Canadian low-cost airline Lynx Air has announced that it will wind down operations next week, citing compounding financial pressures associated with inflation, fuel costs, exchange rates, cost of capital, regulatory costs and competitive tension in the market as reasons behind its decision.

“Offering low fares to inspire Canadians to fly more and to spend more enjoying time with loved ones in beloved destinations was a great privilege. Thank you for supporting us in our journey, we are as disappointed as you are,” Lynx said in a statement.

“We know this is a shock to many and our goal is to make the wind down of our operations as seamless as possible.”

Lynx Air operates nine Boeing 737 MAX 8 aircraft to 18 destinations – 11 in Canada, six in the United States and one in Mexico.

If you have booked a flight with Lynx Air, here’s what you need to know.

Flights booked this weekend up to Sunday

According to Lynx, it will continue to operate most of its flights through the weekend.

“Our passengers are our priority, and to ensure we bring as many of our travellers home as possible,” the airline said, noting that if a flight is cancelled, travellers will be notified via e-mail.

Flights booked on or after Feb. 26

The airline advises travellers to contact their credit card company to get a refund. It noted that the contact centre will not be available to assist with refunds.

For travellers partway through their journey and need to get home

Lynx Air says if the flight is scheduled after Feb. 26, travellers will receive a flight cancellation notification, reiterating that they could get a refund through their credit card company.

“If you would like to move to a flight this weekend, reach out to our contact centre and they will do their best to assist you,” the airline said.

For those with travel or flight voucher

Lynx says travel vouchers and flight vouchers will no longer be accepted once operations cease.

WestJet offering discount for impacted Lynx passengers

WestJet says it is committed to assisting impacted passengers, offering a 25 per cent discount on all economy cabin fares on non-stop WestJet routes previously served by Lynx Air for travel between Feb. 22 and Oct. 26. The airline says travellers can use the code WESTJET and book online through its website until Feb. 29.

In addition, WestJet says fares are capped at $250 plus taxes and fees on all northbound economy cabin fares on non-stop WestJet transborder and sun routes previously served by Lynx for travel up until Feb. 29.

Also, the airline says all domestic fares on non-stop WestJet routes previously served by Lynx for travel up until Feb. 29 will not exceed $500 plus taxes and fees.

“We are communicating closely with government officials and supporting agencies that are also working to address the needs of those impacted,” WestJet said in a statement Thursday.

Air Canada capping fares, adding seats

Air Canada says it will cap fares and add more than 6,000 seats in select markets operated by Lynx Air in response to the announcement.

"The measures are to provide Lynx Air customers affected by the carrier's shutdown affordable options in the Economy cabin on Air Canada flights for travel within Canada, to the US and to Cancun in Mexico so they can return home or make alternative travel arrangements for planned winter trips," the airline said in a statement on Friday.

Air Canada says the fares will be available for purchase before Feb. 26 for travel through April 2 to cover March Spring break and Easter holiday.

The airline added that it was also planning to add incremental capacity of more than 6,000 seats on Lynx routes from Toronto and Montreal to Cancun, Fort Myers, Orlando, Tampa, Phoenix and Las Vegas between Feb. 25 and March 19.

"However, with the busy winter travel holiday period underway, flights are already relatively full and the carrier's ability to increase capacity further is limited," Air Canada said.