Wednesday, May 28, 2025

On May 27, 2025, during a meeting with the , WestJet’s CEO, , shared his views on the state of industry. He strongly argued that air travel in the country should no longer be seen simply as a luxury but as an essential service. highlighted the need for immediate government action to make air travel more affordable, particularly through reducing the fees that passengers are required to pay on their tickets.

Due to , air travel is indispensable for many remote and underserved communities that depend on flights as their only connection to the outside world. pointed out that the fees associated with flying are alarmingly high, with , , , and amounting to on every ticket. This cost, he argued, is substantially higher than in the , where similar charges are only . He emphasized that reducing these additional charges could significantly lower ticket prices, making air travel more accessible to many Canadians who currently cannot afford it.

The WestJet CEO’s primary argument centered around reducing the government-imposed charges on airline tickets. He suggested that if the fees were adjusted to the levels seen in the , it would not only make air travel more affordable but also encourage greater demand for flights across Canada. According to , such a shift could create the conditions necessary for the emergence of another airline comparable in size to , thereby increasing competition and further driving down prices. In his view, would be a key step toward connecting Canadians more effectively and enabling more people to travel by air.

While has reduced its base fares by nearly half in the past 30 years when adjusted for inflation, government taxes and fees have risen sharply—by approximately two-thirds. This increase in charges, according to , has created significant barriers to air travel. ranks poorly in terms of air ticket price competitiveness, coming in at in a study. He stressed that this ranking is not a reflection of airline pricing strategies but rather the excessive taxes and charges imposed on the industry. For many Canadians, these costs are simply too high to justify flying.

Beyond ticket prices, also raised concerns about other regulatory issues affecting air travel, particularly the matter of for flight delays. Currently, passengers are entitled to compensation if their flight is delayed, but the WestJet CEO proposed that customers should have the option to choose between receiving compensation or opting for a lower fare. This would provide consumers with more flexibility and the potential to save money, benefiting those who prioritize affordable travel over compensation.

Additionally, he suggested that there needs to be a broader review of the financial structure that supports Canada’s air sector. Unlike the and industries in , which receive substantial government funding, airlines are left to shoulder the burden of operating costs almost entirely on their own. argued that while should not directly subsidize the airline industry, the government should learn from best practices abroad and explore ways to reduce the cost burden on air carriers. This approach could ensure the long-term sustainability of the .

The CEO noted that is unique in its dependence on user fees. Other modes of transportation, like rail and ferry services, benefit from government subsidies, but do not. stressed that this imbalance could eventually pose a problem for the sector’s growth, especially as continues to expand. A more equitable distribution of funding across different transportation sectors could help keep competitive and viable in the years to come.

Another pressing issue discussed by was the potential impact of on . While passenger tickets are exempt from tariffs, faces challenges due to its agreements to purchase aircraft from . Each costs over , and any tariffs imposed by the on these planes would increase their cost by as much as 25%. With expecting more than in the coming year, the financial impact of such tariffs could be substantial, affecting the airline’s operational strategies and potentially raising ticket prices for consumers.

In addition to the financial pressures facing the airline industry, also addressed the shifting travel patterns between and the . There has been a noticeable decline in cross-border travel, particularly to the , due to several factors including , , and changing political landscapes. According to , bookings for flights to the have dropped by a compared to the previous year. In response, many are opting to fly to destinations like and the , which has prompted Canadian airlines to reassess their cross-border operations.

This downturn in U.S. travel is part of a broader trend of changing public sentiment toward the . Factors such as controversial under former U.S. President , , and growing concerns about national security have led many to reconsider their travel plans. As a result, has seen a decline in the number of travelers heading south, with some opting instead to explore other destinations both within and internationally.

The decline in has significant implications for the broader . According to , in the dropped by 20.2% recently, while air travel from Canada to the U.S. fell by nearly 20% as well. This has forced Canadian airlines, including Air Canada, to rethink their flight routes. Air Canada, for instance, has decided to cancel five of its key routes to the U.S. for the 2025–2026 winter season.

A Crucial Crossroads for Air Travel in Canada

In conclusion, Canada’s air travel sector is at a critical juncture. The high costs associated with government fees, combined with the increasing regulatory burden and shifting international sentiment, are putting tremendous pressure on the system. Von Hoensbroech’s call for lower fees, a review of the funding structure, and greater flexibility for passengers are vital steps that could help improve affordability and accessibility. If left unaddressed, these challenges could have lasting consequences not only for Canada’s aviation industry but for the broader global travel market as well. The long-term effects of these changes will likely be felt across international routes, reshaping the demand and competition among airlines worldwide.