How Passengers Get a Refund Amid Lynx Air Shutdown

On Feb. 22, Calgary-based budget airline Lynx Air announced its impending shutdown. Its operations ended on Feb. 26, leaving numerous Canadians scrambling to rebook their cancelled flights with alternative air carriers.

Here’s what you need to know about securing a refund for unfulfilled Lynx airfare.

Contact your card provider if you booked with a credit card

Up until Feb. 26, Lynx Air had been urging passengers who booked airfare with a credit card to contact their card provider and request a charge reversal and payment refund. The Canadian Transportation Agency (CTA) seconds this recommendation.

However, as of Feb. 27, the airline’s messaging changed, stating on its website that passengers would receive emailed instructions on the refund process.

If you are asked to initiate a refund through your credit card issuer, you should be prepared to provide your financial institution with documentation of the airfare transaction and any communication from Lynx Air on the cancellation of your flight.

Do you have trip cancellation or interruption insurance?

Some forms of travel insurance — specifically, trip cancellation and interruption insurance — provide coverage in the event of a cancelled flight. If you have this type of insurance, either through your credit card or a third-party provider, review your policy to check what’s covered. Contact your insurance provider to report the cancelled flight as soon as possible, as many insurance claim processes are time-sensitive.

Note: you don’t need trip cancellation or interruption insurance to be eligible for a refund on your cancelled Lynx airfare. Canadian consumers can request a credit card chargeback from their provider any time paid services are not provided.

If you booked with a travel agent, the province may reimburse you

Provincial governments in British Columbia, Quebec and Ontario offer protection for travellers with cancelled flights booked through a registered travel agent. Contact the provincial authorities to investigate next steps and learn more about what you’re entitled to receive:

Did you use a debit card or Lynx Air travel voucher? File a complaint

Affected Lynx Air customers who used a debit card or Lynx Air travel voucher to book their flights may have a harder time getting a refund but aren’t without recourse.

“Passengers who believe they are entitled to compensation, a refund or other remedies as a result of a cancellation of their flights can make a claim in writing to Lynx Air,” Jadrino Huot, spokesperson for the CTA, said in an email. “If dissatisfied with the response, or if no response is provided within 30 days, passengers can file a complaint.”

Complaints about Lynx Air can be filed on the CTA website by filling out an online form. Expect to provide information about your cancelled flight and proof that you have already attempted to contact Lynx Air in writing.

Huot says that affected Lynx Air travellers should be aware that their ability to extract a refund from the defunct airline may be limited or delayed by the company’s creditor protection proceedings.

“All proceedings, including complaints filed with the CTA, against Lynx Air are stayed and suspended pending further order of the Court,” Huot said in an email.

Lynx Air filed for creditor protection which provides companies with 30 days of protection from their creditors. As a result, the processing of existing complaints against the airline has been paused. New complaints can be filed, though they will not be processed while the stay is in place. As of Feb. 26, Lynx Air had 1,439 unresolved complaints with the CTA.

In a public statement posted on X, Canadian Transport Minister Pablo Rodriguez said, “I expect Lynx to fully refund you if your fare won’t be honoured. My office has been in touch with Lynx, we will continue to communicate with all parties, and we’ve convened calls with other airlines to see how they can help, to ensure that passengers are put first.”

While you wait for your CTA complaint to be addressed, document any correspondence you receive from Lynx Air. Securing a refund for your cancelled airfare may not be feasible under the extenuating circumstances of the air carrier’s shutdown. If a refund is possible, the process may be prolonged, so be prepared to wait weeks — even months — for a resolution.