Lynx Air succumbs to market realities. What next for Canada's crowded airline landscape?

One of the questions CAPA - Centre for Aviation pondered in its North American outlook for 2024 was: how Canadian start-up ultra-low cost carriers (ULCC) would ensure that they could compete, given some of the unique characteristics of the country's aviation market.

Now one of those start-ups, Lynx Air, is ceasing operations, just shy of its two-year anniversary.

The airline appeared to have solid financial backing, a young fleet, and a steady stream of planned route expansion. But Lynx Air abruptly declared that it would be ending service at the end of Feb-2024.

Once Lynx Air exits the market, Flair will be the remaining ultra-low cost carrier in the country, navigating some similar market pressures that Lynx Air could not overcome.