Ottawa offers millions in loans to airlines struggling with high jet fuel costs

A file image of an airplane.

The federal government is offering big loans to airlines struggling to cope with the soaring price of jet fuel.

Finance Minister François-Philippe Champagne says the new aid program will let carriers borrow up to $150 million each.

He says ballooning energy costs are putting pressure on airlines’ balance sheets, and that financial relief will help ensure affordable travel for passengers.

The government says airlines that sign up must commit to buy Canadian, restrict dividends and executive compensation and maintain existing jobs in the country.

The International Air Transport Association is forecasting billions of dollars in lost profits among North American carriers due to high fuel prices caused by the Middle East war and the closure of the Strait of Hormuz, which choked off nearly a fifth of global oil supply.

The federal loan program marks the second time since COVID-19 that Ottawa has reached out with aid packages for airlines, after Air Canada, Porter Airlines and Air Transat accepted support during the pandemic.

Christopher Reynolds, The Canadian Press

This report by The Canadian Press was first published June 8, 2026.