As global conflicts and supply disruptions continue to disrupt energy markets, the federal government is introducing additional measures aimed at helping Canada’s airline sector manage soaring fuel costs while preserving affordable air travel for Canadians.
On June 8, the Government of Canada announced the launch of the Liquidity for Airline Sector Resilience facility, a new loan program administered through the Canada Enterprise Emergency Funding Corporation (CEEFC). The initiative will provide eligible Canadian airlines facing significant financial pressures from elevated jet fuel prices with up to $150 million in repayable liquidity support on an as-needed basis.
The new measure builds on temporary fuel tax relief already introduced by Ottawa. From April 20 to September 7, 2026, the federal government removed the excise tax on fuel, lowering costs by four cents per litre on aviation fuel, while also providing broader relief of 10 cents per litre on gasoline and four cents per litre on diesel.
Airlines across the world have been grappling with increased operating expenses driven by volatile energy markets. In Canada, the sector remains vital to connecting communities, supporting tourism, enabling trade, and providing reliable transportation across the country’s vast geography.
The new facility is designed as a temporary and targeted response to those pressures. Support will be linked directly to both rising jet fuel prices and the fuel consumption levels of Canadian carriers.
Airlines receiving assistance will be required to meet several conditions, including commitments to Buy Canadian policies, restrictions on dividends and executive compensation, and maintaining Canadian operations and jobs.
“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. 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,” explained the Honourable François-Philippe Champagne, Minister of Finance and National Revenue.
“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,” stated the Honourable Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons.
With fuel markets expected to remain unpredictable, Ottawa’s latest intervention aims to provide stability to Canadian airlines while protecting jobs and ensuring travellers continue to have access to competitive air services across the country.
