Air Canada to cap fares, increase capacity to take on Lynx Air fliers By Reuters

(Reuters) – Air Canada said on Friday that it will cap fares and add more than 6,000 seats in some markets operated by Lynx Air in light of the imminent suspension of operations by the troubled Canadian budget airline.

Air Canada said that the measures would help Lynx Air customers impacted by the shut down of the airline to return home or make alternative arrangements for planned trips.

Calgary-based Lynx Air filed for court protection from creditors on Thursday, and said it would cease operations from Feb. 26 as it grapples with higher operating costs, fuel prices, and airport charges.

According to Cirium, an aviation analytics company, Lynx has 9 Boeing (NYSE:) 737 MAX 8 in service and is scheduled to operate 569 flights in February.

Air Canada said the capped fares will be available for purchase before Feb. 26 for travel across Canada up until April 2, to aid travel during the spring break and Easter holiday periods.

The added capacity of above 6,000 seats on Lynx Air routes will be available in certain locations in Canada, as well as the U.S., and Cancun in Mexico between Feb. 25 and March 19, the airline said.

Air Canada added that flights were already “relatively full” due to high demand during the winter travel period, and its ability to increase capacity further was limited.

WestJet, Air Canada’s smaller rival, has also promised to offer discounts on routes previously served by Lynx.