Lynx Air says passenger refunds will hurt investors because of defiant contractor

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Lynx Air News

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Lynx's shutdown comes as the budget airlines that have cropped up in recent years face ongoing financial pressures.

WATCH ABOVE: Lynx Air ’s decision to cease operations leaves passengers stranded and people with travel plans in limbo, scrambling to make alternate arrangements. – Feb 23, 2024

Lynx Air says customer refunds are a big expense for the insolvent company thanks to an unco-operative contractor. The ultra-low-cost carrier, which ceased operations and filed for creditor protection in late February, claims in court filings that the firm contracted to handle bookings, Texas-based Sabre Corp., has “refused to assist” with passenger reimbursement.

Lynx says that leaves it no choice but to work with its credit card processor to deal with chargebacks for would-be travellers whose flights were cancelled.Lynx says the chargeback process is costly, resulting in big fees for the airline that are ultimately “to the detriment” of investors hoping to recoup some of their money.

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