The Canadian government has announced it’s taking targeted action to support stability in Canada’s airline sector during this period of elevated fuel prices.
Minister of Finance and National Revenue, François-Philippe Champagne, announced the launch of the Liquidity for Airline Sector Resilience facility, a new loan program through the Canada Enterprise Emergency Funding Corporation (CEEFC). The facility will offer eligible Canadian airlines experiencing significant financial pressures resulting from elevated jet fuel costs up to $150 million in repayable liquidity support, on an as-needed basis.
The Liquidity for Airline Sector Resilience facility will provide timely, targeted and temporary support to help airlines manage exceptional fuel-cost pressures, maintain operations and jobs, and preserve a competitive airline sector that Canadians rely on for affordable travel options.
Minister Champagne said that: “Global events continue to create uncertainty in energy markets, increasing costs for industries around the world, including aviation. Canadians should continue to have access to reliable and affordable air travel, whether they are visiting loved ones, travelling for work, or exploring our country.”
He said that: “By building on existing relief measures with targeted and temporary support for Canada’s airline sector, we are helping maintain connectivity, protect Canadian jobs, and reduce pressures on travellers during this period of elevated fuel costs.”
Elevated jet fuel prices have significantly increased operating costs across the global aviation sector, placing additional pressure on airlines as they navigate ongoing market volatility.
The Liquidity for Airline Sector Resilience facility is designed to respond directly to the financial costs of this challenge by linking support to both the increase in the price of jet fuel and the fuel consumption levels of Canadian airlines.
Airlines that receive support through this new loan program would have to commit to Buy Canadian, restrict dividends and executive compensation, and maintain their Canadian operations — including protecting jobs.
As well, to help address these pressures and support reliable and affordable air travel, the government has also temporarily removed the federal fuel excise tax from April 20 to Sept. 7, 2026, reducing costs by 4 cents per litre on aviation fuels, alongside broader relief of 10 cents per litre on gasoline and 4 cents on diesel.
Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons, said that: “The Government of Canada is focused on strengthening a resilient and competitive air sector that supports economic growth and keeps air travel affordable for Canadians. As airlines face rising jet fuel costs, today’s relief measure will help stabilize the industry and support a competitive aviation sector for the future.”
