by Jen Mallia
Last updated: 10:15 AM ET, Wed July 29, 2026
Transat will take advantage of a federal government loan program designed to help airlines deal with the increased cost of jet fuel. The Canadian Press reports the airline has secured up to $150 million in federal funding, describing it as a "loan lifeline".
The plan was announced by Ottawa in June and has since met mixed reactions from airlines. The nation’s largest airlines rejected it, with Air Canada stating it would not need to draw on government assistance and WestJet strenuously objecting to the program. At the time, WestJet officials questioned the necessity of the program, saying the money would be better spent on addressing structural change to the industry. "We ask the government to abandon the cycle of corporate charity and focus on long-term stability by fixing the overdue foundational cost issues that hold our entire industry back," a spokesperson said when the program was announced.
Smaller airlines, such as Flair, Transat and Porter voiced support for the plan or stated their intention to take it under consideration.
In defending the plan, Finance Minister Champagne's press secretary, John Fragos, told CTV News the program was developed following consultations with Canadian airlines to provide "immediate and specific liquidity support" during an "unprecedented global fuel shock."
"While the support in question is allotted on a needs-basis and is unique to individual airline's own circumstances, the support goes directly towards stabilizing capital needs among Canadian airlines and ensuring continued access to affordable and diverse flight routes," Fragos said.
Transat will draw on the loan monthly, in amounts determined by the year over year price difference of fuel from last year. The first installment is set to transfer next week. The loan is expected to be paid back at a 3.91 percent interest rate.
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