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

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.

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

Lynx’s shutdown comes as the budget airlines that have cropped up in recent years face ongoing financial pressures amid industry consolidation following a travel industry implosion during the COVID-19 pandemic.