Lynx Air claims returning passengers will hurt investors

CALGARY –

Lynx Air says refunding customers due to an uncooperative contractor is a huge loss for the insolvent company.

The ultra-low-cost carrier, which shut down in late February and filed for creditor protection, filed lawsuits against Texas-based Saber Corp. declares that the company has entered into a contract to deal with reservations.

Lynx says prospective travelers whose flights have been canceled have no choice but to work with their credit card processor to get a refund.

Lynx says the recall process will be costly, costing the airline huge fees that will ultimately “harm” investors hoping to get some of their money back.

Saber Corp. did not immediately respond to a request for comment.

Lynx's closure comes as budget airlines that have sprung up in recent years face sustained financial pressure amid industry consolidation following the collapse of the travel industry during the COVID-19 pandemic.

This Canadian Press report was first published on April 15, 2024.