Goodbye Lynx

Ripbozo

Author

Amyn Dehal
March 09, 2024

Good morning! Crazy stuff happening in the EV market this week. Youtuber Marques Brownlee recently tested Fisker’s latest EV and called it the “worst car I’ve ever reviewed.” Later, a Fisker senior engineer called the dealership that loaned Brownlee the car to try to do damage control. In the video, they admitted that even after the car’s new update, Fisker’s software “still got some holes in it.” Since MKBHD’s video, Fisker’s stock has tanked 50%.

Budget Airline Lynx Airlines Closes Amid Financial Strain

Recently, Lynx, the budget airline based out of Calgary, shut down all operations. A court filing indicates that Lynx barely had enough money to operate daily. Additionally, increased operating costs and fuel prices forced the business to shut down completely. Lynx Airlines had leased a total of nine planes during their operations but has stated that they are unable to pay their loans. Currently, Lynx faces enforcement action from suppliers.

Zoom Out: The Canadian air travel industry is highly concentrated. As such, analysts expect Lynx’s exit will increase consumer prices in the short run. Lynx Airlines had some of the most aggressive airfare prices, so their exit has allowed larger airlines such as Air Canada and Westjet to relax, ultimately leaving consumers to bear the burden of Lynx’s failures.

Court-Side Crunch

A rollercoaster of triumphs and setbacks has marked the Toronto Raptors’ professional journey. From the “LeBronto” era in 2015 to their crowning achievement of winning the NBA playoffs in 2019, the basketball team has garnered undying support from dedicated fans across Canada.

But, after having traded several top players and significantly accelerating ticket prices, nearly $400 more between this and the upcoming season, once loyal fans have been left upset over investing substantial portions of their paychecks into a less exciting team. But Raptors fans aren’t standing alone in this dilemma.

The Era of “Funflation”

From the outrageous prices of Taylor Swift’s Eras tickets to theme-park visits, ticket prices for live entertainment events have risen tremendously this past year, a phenomenon many have called “funflation.” While 37% of Americans say they cannot keep up with such a staggering rise, a surprising 20% have stated they are willing to take on debt to afford their favourite entertainment activities. For instance, the cost of a one-day ticket to Disney World has surged by nearly 47% since 2019, far outpacing current inflation rates.

Bottom line: During a juxtaposed period of economic challenges and consumerist culture, inquiries surrounding accessibility and affordability have become pressing concerns for fans and consumers alike.

📈 Market Updates

Economic Pulse 🌐 

Despite sanctions imposed by Western nations in the wake of the conflict in Ukraine, the Russian economy has stayed resilient. Though real GDP declined by 1.2% in 2022, Russia has succeeded in boosting trade with non-Western countries, especially China and India, in the past year. Additionally, capital controls, which have stabilized the currency, have resulted in declining inflation. Overall, real GDP increased 3.6% in 2023, showing resistance to sanctions meant to cripple the Russian economy and reduce the nation’s ability to fight.

Money Moves 💰️ 

Oil giant ExxonMobil filed for arbitration to retain preemption rights in a massive Guyanese oil field, threatening competitor Chevron’s $53B takeover of Hess. Exxon SVP Neil Chapman stated that “Chevron’s deal to buy Hess amounts to circumventing Exxon’s pre-emption rights.” This move increases tension between Exxon and Chevron over Guyana, home to the world’s fastest-growing oil development.

Elsewhere, Apollo Global is exploring a potential bid for travel information service TripAdvisor, which has a $3.7B market cap and has seen a 25% jump in share price in the past year.

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📞Word on the Street

Senior Editor: Amyn Dehal

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