Government of Canada introduces targeted support to help Canada’s airline sector weather global fuel market volatility

From: Department of Finance Canada

News release

June 8, 2026 - Ottawa, Ontario - Department of Finance Canada

Global conflicts and supply disruptions have contributed to significant volatility in energy markets, driving up fuel prices and creating uncertainty across the global aviation sector, including in Canada. To help address these pressures and support reliable and affordable air travel, the Government of Canada has temporarily removed the federal fuel excise tax from April 20 to September 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.

Today, the Government is taking further targeted action to support stability in Canada's airline sector during this period of elevated fuel prices. The Minister of Finance and National Revenue, the Honourable 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.

Canada's airline sector plays a critical role in connecting communities, supporting tourism, facilitating trade, and ensuring Canadians can travel safely and reliably across our vast country. 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.

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.

Quotes

“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.”

- 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.”

- The Honourable Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons

Quick facts

  • Canada Development Investment Corporation (CDEV), a federal Crown corporation, established Canada Enterprise Emergency Funding Corporation (CEEFC) in 2020.

  • In March 2025, CDEV was mandated to establish and administer the Large Enterprise Tariff Loan (LETL) facility to support large Canadian enterprises affected by actual and potential new tariffs and countermeasures and which face challenges accessing traditional sources of market financing.

  • CEEFC’s loan programs protect Canadian jobs and the Canadian economy by helping Canadian businesses remain solvent in times of significant economic shock. Loans provided under these programs are intended for otherwise viable organizations that are unable to quickly access traditional sources of capital to manage and bridge short-term liquidity needs through a period of significant economic uncertainty.

  • The Government of Canada has temporarily removed the federal fuel excise tax from April 20 to September 7, 2026, reducing costs by 4 cents per litre on aviation fuel, alongside broader relief of 10 cents per litre on gasoline and 4 cents per litre on diesel.

  • Support provided through the Liquidity for Airline Sector Resilience facility is temporary, targeted, and repayable. Participating airlines must meet conditions related to maintaining Canadian operations, protecting jobs, Buy Canadian commitments, and limits on executive compensation and shareholder distributions.

Associated links

Contacts

Media may contact:

John Fragos
Press Secretary
Office of the Minister of Finance and National Revenue
John.Fragos@fin.gc.ca

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries:

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

Stay Connected

Page details

2026-06-08