WestJet Urges Ottawa Aviation Strategy as Fuel Costs Add $1.6B Annually
WestJet CEO Alexis von Hoensbroech urges Ottawa to adopt a national aviation strategy as fuel costs rise.

WestJet Urges Ottawa Aviation Strategy as Fuel Costs Add $1.6B Annually

WestJet fuel costs are rising by $1.6 billion annually, prompting calls for Ottawa to develop a national aviation strategy.


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Sourced from 7 news outlets · most facts from Alexis von Hoensbroech · 1 point in dispute. How we sourced this

WestJet is pressing Ottawa for a national aviation strategy, arguing that higher fuel costs are landing on a Canadian airline system already strained by charges, taxes, regulation and labour disruptions.

Key facts

  • WestJet CEO Alexis von Hoensbroech urged Ottawa to develop a national aviation strategy as rising fuel costs and other pressures threaten Canada’s airline industry.
  • WestJet said Canada’s aviation system has very few remaining “shock absorbers,” and that airlines are pressured by airport charges, air-navigation fees, passenger-protection obligations, taxes and regulatory requirements, along with labour disruptions.
  • WestJet said it is opposed to Ottawa’s federal airline loan/financing program and argues that governments should not intervene in markets because it distorts competition against self-funding airlines.
  • WestJet highlighted Calgary as a model hub, saying it serves more than 100 nonstop destinations from the city and that a 2022 memorandum with Alberta made Calgary its sole global connecting hub and helped attract a Lufthansa Technik engine maintenance facility and a CAE aviation training centre.

WestJet fuel costs and fare pressure

WestJet says it is facing an additional $1.6 billion in annual fuel costs and is planning for prices to remain elevated through 2027 and possibly into 2028.

“People will have to expect that airlines will eventually have to recover the cost of fuel through ticket price,” WestJet CEO Alexis von Hoensbroech said. “There’s no other way. You either recover your cost of doing business, or you’re out of business.”

The airline says fare increases can cover only part of the jump in fuel expenses, leaving narrow margins to absorb the balance. It has welcomed Ottawa’s fuel-tax relief, while maintaining that the measure is small against its growing fuel bill.

WestJet is also accelerating the retirement of older, less fuel-efficient aircraft and replacing them with more efficient planes.

Cost pressures on Canada’s aviation system

Fuel, WestJet argues, has exposed deeper weaknesses in the country’s aviation system. The company cites airport charges, air-navigation fees, passenger-protection obligations, taxes, regulatory requirements and labour disruptions as cumulative pressures on carriers.

“That is why the fuel story is not only about fuel,” von Hoensbroech said. “Fuel is bringing to light what was already there: Canada’s aviation system has very few shock absorbers left.”

WestJet says Canada ranks 105th among 119 countries for airline cost competitiveness. It also points to airport improvement fees that are often $40 in Canada, compared with a US$4.50 cap in the United States.

WestJet rejects federal financing

The carrier remains opposed to Ottawa’s federal airline loan and financing program. WestJet says governments should not intervene in airline markets because doing so distorts competition for carriers that fund themselves.

“We fundamentally believe that governments should not intervene in markets if they want a healthy and competitive industry,” von Hoensbroech said.

Calgary as an aviation hub model

WestJet has pointed to Calgary as an example of coordinated aviation policy. The airline serves more than 100 nonstop destinations from the city.

A 2022 memorandum with Alberta established Calgary as WestJet’s sole global connecting hub. WestJet says the collaboration helped attract a Lufthansa Technik engine maintenance facility and a CAE aviation training centre.

“Calgary didn’t get here by changing one policy,” von Hoensbroech said. “We got here by dreaming big together and lining up every decision behind that goal. Canada can do the same.”

The company says Canada-to-U.S. travel demand remains about 25 to 30 per cent below previous levels, but it has aircraft and crews available to restore service if that demand returns.

What we don't know yet

  • WestJet did not identify which carriers, financing arrangements or specific fares it was referring to when criticizing federal financing for competing airlines.
  • Von Hoensbroech did not explicitly detail what the national aviation strategy would contain.

How outlets covered it

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How we sourced this story

Most key facts come from one source, Alexis von Hoensbroech, as reported by 7 news outlets. They differ on 1 point.

11 key facts · 0 independently corroborated · 11 from statements or releases · 1 disputed

Where sources differ

The federal airline-loan program’s stated amount/limit.

Travelweek: Air Transat has a federal government loan worth $400 million and Porter Airlines has a federal government loan worth $125 million.

Radio-Canada: In June, Ottawa launched a liquidity mechanism allowing airlines to obtain up to $150 million refundable.

Allegations described here are not proven in court unless stated.

French-language reports were read in machine translation; the links go to the originals.

How we put this together: we compare reporting from the outlets above, draft with the help of AI tools, and an editor checks every story before it's published. Our methodology.


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