FOR IMMEDIATE RELEASE

National Airlines Council of Canada Responds to Spring Economic Update 2026

Ottawa, ON, April 28, 2026 – Jeff Morrison, President and CEO of the National Airlines Council of Canada (NACC), which represents Canada’s largest air carriers (Air Canada, Air Transat, Jazz Aviation LP and WestJet), issued the following statement regarding today’s Spring Economic Update:

“In a country like Canada, air travel is not a luxury; it is an irreplaceable mode of transport people rely on to stay connected, and a critical link in the domestic and global supply chain – airlines play a critical role in the government’s trade diversification efforts. However, over the past several months, Canada’s airlines have been hit by a growing number of geopolitical shocks that have added costs and complexity to aviation in Canada. It is critical that the federal government supports this crucial sector with a regulatory and cost regime that enhances competitiveness and productivity

One of the most costly and inefficient regulatory requirements putting air travel out of reach for Canadians is the Air Passenger Protection Regulations (APPR). In today’s Spring Economic Statement, the government committed to “develop a simpler and more effective regulatory [APPR] regime, so that rules are clearer and passengers are fairly and more quickly compensated when air travel does not go as planned.”. NACC welcomes such a development, as the current APPR regime is confusing, costly to passengers and airlines, and not fit for purpose. Although more details are required, the government’s efforts to reduce the cost and complexity of the APPR framework is overdue.

Furthermore, NACC welcomes the announcement that the government will be moving to a new system to adjudicate passenger complaints. The current process within the Canadian Transportation Agency is ineffective, resulting in a considerable backlog – a fact acknowledged by the federal government. We are hopeful in the opportunity that an Alternative Dispute Resolution process could bring– however, such a system needs to recognize the significant cost pressures facing Canada’s airlines, and that such a system does not amplify those cost pressures.

NACC also notes the government’s intentions related to increasing investment in Canada’s airports. NACC will participate in that process as required, and hopes that through that process, the government will take action soon on revising airport ground lease rent formulas to enable lower costs for passengers – a point underscored in a recent NACC report.

We will continue to work with the federal government to ensure that policies directed at the aviation ecosystem result in both cost savings and an improved experience for passengers.”

 

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About the National Airlines Council of Canada:

The National Airlines Council of Canada represents Canada’s largest national and international passenger air carriers: Air Canada, Air Transat, Jazz Aviation LP and WestJet. It promotes safe, sustainable, accessible and competitive air travel by advocating for the development of policies, regulations and legislation to foster a world-class transportation system.

 

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