NACC and Canadian Airports Council Call for Strategic Investment and Regulatory Reform in 2026 Pre-Budget Submission

OTTAWA, June 8 2026 – The National Airlines Council of Canada (NACC) and the Canadian Airports Council (CAC) have submitted a joint pre-budget submission to the House of Commons Standing Committee on Finance, outlining five critical recommendations to enhance the productivity, efficiency, and global competitiveness of Canada’s aviation sector.

As Canada works toward its trade diversification goal of unlocking $300 billion in new opportunities, the aviation ecosystem serves as a primary engine for growth. Air travel is expected to facilitate 10% of this export goal through increased tourism, while air cargo—50% of which is carried in the cargo hold of passenger aircraft—remains vital for shipping high-value and perishable goods.

“Now is the time to put in place policies that will enable Canada’s aviation system to become more competitive, productive, and affordable,” the submission states, noting that aviation is an essential enabler of a globally connected Canadian economy.

To achieve this vision, NACC and CAC are calling on the federal government to:

● Accelerate the Red Tape Reduction Review: The industry recommends accelerating the review process launched in 2025, specifically addressing redundant and costly regulations such as the current Flight Duty Time Regulations and the proposed 2024 changes to the Air Passenger Protection Regulations (APPR).

● Prioritize Traveller Modernization: The organizations urge the government to fast-track the implementation of biometrics and digital tools. Pilot projects have demonstrated that biometric boarding can save significant time and costs, contributing to better on-time performance.

● Support the “Missing Middle” of Airport Infrastructure: The submission calls for increasing the Airports Capital Assistance Program (ACAP) to $150 million annually for small airports. It also recommends new funding mechanisms to address a $200 million annual gap for medium-sized regional hubs that currently fall between existing funding streams.

● Reform the Federal Airport Rent Formula: To support over $28 billion in required infrastructure investment over the next decade, the industry recommends capping federal rent at 2024 levels, eliminating rent for airports with fewer than 4 million passengers, and ensuring all rent collected is reinvested back into the airport system.

● Enhance Regional and Global Connectivity: The government should launch a multi-stakeholder process to explore ways to strengthen service to regional centres, which have been disproportionately impacted by high fuel costs, workforce shortages, and onerous federal fees.

By adopting these measures, the federal government can ensure that the aviation sector remains a robust partner in Canada’s long-term economic prosperity.

A copy of the submission can be found at the following: 2026 Pre-Budget Submission to the House of Commons Finance Committee

-30-

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. In 2024, air transportation contributed an estimated 3.8% of Canada’s GDP, and supported 809,000 jobs in Canada.

About the Canadian Airports Council:

The Canadian Airports Council (CAC), a division of Airports Council International-North America, is the voice for Canada’s airports community. Its 60 members represent more than 100 airports, including all of the privately-operated National Airports System (NAS) airports and many municipal airports across Canada.

Canada’s airports support 435,800 jobs, providing $32.9 billion in annual wages, generating $49.6 billion in GDP and producing $123.5 billion of annual economic output.

For media requests:

For English requests, please contact Josie Sabatino at jsabatino@summa.ca; 250-649-6856.

For French requests, please contact Carlene Variyan, cvariyan@summa.ca; 613-601-7456.