WestJet is pushing back against Ottawa's newly announced airline loan program, arguing the federal government should focus on addressing structural costs facing the aviation sector rather than offering financial assistance to carriers.
The criticism comes as other Canadian airlines, including Porter Airlines, Air Transat and Flair Airlines, have signalled support for, or are reviewing, the federal program announced Monday by Finance Minister François-Philippe Champagne.
According to reporting by CTV News, the federal government is making up to $150 million in repayable loans available to airlines facing higher operating costs linked to the ongoing fuel crisis triggered by conflict in the Middle East and the closure of the Strait of Hormuz.
In a statement provided to CTV News, a WestJet spokesperson said the airline "strongly opposes" the program.
"The government faces a choice: continue with costly and market distorting subsidies or build a sustainable future for Canadian aviation," the spokesperson said.
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The airline also pointed to previous government support programs, arguing taxpayers have already absorbed significant costs from pandemic-era assistance.
"We've seen where this path leads," the spokesperson told CTV News. "In 2025 alone, taxpayers lost around C$400 million in COVID-19-related airline loans that were forgiven by the federal government. With this, they have been turned into direct taxpayer subsidies to some airlines."
WestJet added that government funds could be directed toward other priorities and questioned whether some carriers would ultimately be able to repay the loans.
"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," the spokesperson said.
The federal government has defended the initiative, describing it as a targeted response to extraordinary fuel market conditions.
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In comments provided to CTV News, Finance Minister Champagne's press secretary, John Fragos, said the program was developed following consultations with Canadian airlines and is intended 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.
While jet fuel prices have eased somewhat since peaking in the weeks following the Strait of Hormuz closure, prices remain significantly higher than pre-conflict levels.
The fuel crisis has already prompted several Canadian carriers to introduce temporary surcharges, adjust capacity plans and review operating costs.
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According to CTV News, Flair Airlines, Porter Airlines and Air Transat all welcomed the government's offer of assistance, with Porter and Air Transat indicating they are reviewing the details of the program.
The federal government has also temporarily suspended collection of the excise tax on aviation fuel as part of broader efforts to ease pressure on the industry.
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