WestJet has strongly opposed the Canadian government’s proposal to issue loans to airlines amid the rising fuel costs. As a response to the latest announcements, the carrier made a press release, saying,
The government faces a choice: continue with costly and market distorting subsidies or build a sustainable future for Canadian aviation.
On Monday, Finance Minister François-Philippe Champagne announced the federal government is offering airlines a boost ahead of the busy summer travel season, launching a loan program for those struggling with the high price of fuel.
“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,” Finance Minister François-Philippe Champagne said in a statement
“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.”
A WestJet spokesperson says the company “strongly opposes” the federal government’s offer to dole out loans to airlines, amid the still-ongoing conflict in the Middle East and resulting closure of the Strait of Hormuz causing a spike in fuel prices.
We’ve seen where this path leads. In 2025 alone, taxpayers lost around $400 million in COVID-related airline loans that were forgiven by the federal government. With this, they have been turned into direct taxpayer subsidies to some airlines.
According to WestJet, This time is no different as it is unlikely that they can ever be repaid by the airlines that might accept them, so they will easily result in further hundreds of millions of taxpayer dollars that could have been used for other more meaningful purposes.
The statement also says the federal funds could be “used for other more meaningful purposes,” as it’s unlikely the airlines will ever be able to repay the loans.
The Canadian government said rising prices have “significantly increased operating costs across the global aviation sector, placing additional pressure on airlines as they navigate ongoing market volatility.”
However, WestJet has different views, its press release read as,
The United States, our direct competitor, have deliberately stayed away from bailing out airlines in the spirit of fair and level playing field competition. Their airlines face the same oil prices as ours and Canada should stay away from distorting markets, both within our country and across the border to the US, especially at this sensitive time between our nations.
WestJet has proven a different path is possible to be a viable competitor in the Canadian market. We do not take government loans and instead advocate for a competitive environment where airlines can succeed based on their own strength.
At the end, WestJet asked the Canadian Government to stop the cycle of corporate charity, and said,
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.
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