A newly released study reports that Canada could boost its GDP by up to $15 billion, create up to 150,000 jobs, and unlock trade and productivity benefits, all while improving the affordability of air travel, by reducing the third-party taxes, fees, charges and regulations currently imposed on air travel.
The landmark, peer-reviewed study – conducted by Oxera Consulting – was published by the National Airlines Council of Canada (NACC) which represents Canada’s largest passenger air carriers — Air Canada, Air Transat, Jazz Aviation LP and WestJet.
Entitled “Ready for takeoff: the economic case for reducing aviation costs in Canada,” the study outlines concrete actions the Canadian government can take to stimulate the air travel sector in Canada.
Along the way, the study points out that the ecosystem is currently subject to a wide range of third-party fees, charges and taxes, but the study finds that reducing these fees can unlock tremendous economic potential and contribute to achieving national objectives including trade diversification.
Jeff Morrison, President and CEO of NACC, observed that: “In a country as vast as Canada, air travel is not a luxury. It is a crucial mode of transport for people and goods, and Canadians expect an air travel system that supports economic growth and that is affordable.”
And Morrison points out: “This report illustrates that improving the affordability of air travel through a reduction in taxes, charges and fees will stimulate the market, which in turn will have spinoff benefits across the economy.”
Key results include:
- Aligning taxes, charges and fees with levels in Sweden means a family of four travelling on a return trip from Toronto to Vancouver would pay around $251 less for their plane tickets. A family of four travelling from Edmonton to Montreal on a return trip would save $282.
- This would result in up to $9 billion in additional GDP and create 86,000 jobs from increased air travel. Reducing fees to this level could also increase the value of trade by $106 billion and increase GDP by $17 billion through enhanced productivity.
- Matching the level of taxes, charges and fees with those in the US would generate $11 billion in increased GDP, creating 112,000 jobs.
- Removing all taxes, charges and fees would generate $15 billion in additional GDP while creating 151,000 jobs. This would also increase trade by over $160 billion and generate $30 billion in GDP from enhanced productivity.
And while some might fear that lifting fees would reduce tax revenues that the federal government relies on, NACC’s ‘Ready for take-off’ report finds that unlocking more affordable air travel in our country could result in an increase in total tax revenue between $2 and $10 billion, by spurring more economic activity. The benefit to both consumers and the government is clear.
And NACC isn’t the first to outline the clear need for change. In June 2025, the Competition Bureau of Canada acknowledged the impact of the current “user pay” model and proposed amendments to the Air Passenger Protection Regulations (APPR).
And in November 2025, the House of Commons’ Standing Committee on Transport, Infrastructure and Communities tabled a report finding that high costs, excessive federal fees, and regulatory hurdles are among the core challenges undermining affordability and competition in Canadian aviation, and calling for a government review.
Commenting on the report, the WestJet Group’s EVP & Chief People and Public Affairs Officer, Jacqui McGillivary said: “We are pleased to see that our valued partners at NACC are investing in the research WestJet has long believed and advocated for. Making air travel more affordable by lowering third-party taxes and fees is one of the most important levers in strengthening Canada’s economy.”
The company pointed out that between this report, and the Competition Bureau of Canada’s latest market study, WestJet is encouraged to see that industry partners, as well as government, recognize the need for change.
Said McGillivary: “A Canada connected by affordable air travel is a better Canada for everyone. I urge all Canadian to review NACC’s report and educate themselves on the importance of making air travel more affordable. NACC’s recommendations mean more Canadians could gain stronger access to necessities such as medical care and trade, as well as connect with the people and places they love.”
And NACC’s Morrison concluded: “It has been made abundantly clear that a better system is within reach. As Canada looks to strengthen its own economy and reinforce our ties with trading partners around the world, the time to act on air travel fees is now.”
Go to https://airlinecouncil.ca/ for the full report.
