February 23, 2026 – Ottawa, ON – The National Airlines Council of Canada (NACC), which represents Canada’s largest passenger air carriers  (Air Canada, Air Transat, Jazz Aviation LP and WestJet), today published a landmark peer-reviewed study, conducted by Oxera Consulting, which finds that Canada could boost its GDP by up to $15 billion, create up to 150,000 jobs, and unlock trade and productivity benefits, all while improving the affordability of air travel, by reducing the third party taxes, fees, charges and regulations currently imposed on air travel.

“Ready for takeoff: the economic case for reducing aviation costs in Canada,” outlines concrete actions the Government of Canada can take to stimulate the air travel sector in Canada. The ecosystem is currently subject to a wide range of third-party fees, charges and taxes, but the study finds that reducing these fees can unlock tremendous economic potential and contribute to achieving national objectives including trade diversification.

“In a country as vast as Canada, air travel is not a luxury. It is a crucial mode of transport for people and goods, and Canadians expect an air travel system that supports economic growth and that is affordable,” said Jeff Morrison, President and CEO of NACC. “This report illustrates that improving the affordability of air travel through a reduction in taxes, charges and fees will stimulate the market, which in turn will have spinoff benefits across the economy.”

Other countries that share similarities with Canada, including Sweden, have recently moved to eliminate some of these taxes and fees, in order to improve competitiveness and stimulate their air travel markets. The study examined four scenarios of reductions in taxes, charges and fees, including: reversing recent fee increases and reinvesting airport rents, aligning fee levels with Sweden or the United States all the way up to a complete removal of all taxes, charges and fees.

Key results include:

  • Aligning taxes, charges and fees with levels in Sweden means a family of four travelling on a return trip from Toronto to Vancouver would pay around $251 less for their plane tickets. A family of four travelling from Edmonton to Montreal on a return trip would save $282.
  • This would result in up to $9 billion in additional GDP and create 86,000 jobs from increased air travel. Reducing fees to this level could also increase the value of trade by $106 billion and increase GDP by $17 billion through enhanced productivity.
  • Matching the level of taxes, charges and fees with those in the US would generate $11 billion in increased GDP, creating 112,000 jobs.
  • Removing all taxes, charges and fees would generate $15 billion in additional GDP while creating 151,000 jobs. This would also increase trade by over $160 billion and generate $30 billion in GDP from enhanced productivity.

While some might fear that lifting fees would reduce tax revenues that the federal government relies on, today’s report finds that unlocking more affordable air travel in our country could result in an increase in total tax revenue between $2 and $10 billion, by spurring more economic activity. The benefit to both consumers and the government is clear.

NACC is not the first to outline the clear need for change. In June 2025, the Competition Bureau of Canada acknowledged the impact of the current “user pay” model and proposed amendments to the Air Passenger Protection Regulations (APPR). In November 2025, the House of Commons’ Standing Committee on Transport, Infrastructure and Communities tabled a report finding that high costs, excessive federal fees, and regulatory hurdles are among the core challenges undermining affordability and competition in Canadian aviation, and calling for a government review.

Today’s news lays out the benefits that are within reach for Canadians if the federal government were to modernize the current framework of fees, charges, taxes, and regulations such as the APPR. The data contained within this detailed publication can be used by policy makers to advance positive change.

“It has been made abundantly clear that a better system is within reach. As Canada looks to strengthen its own economy and reinforce our ties with trading partners around the world, the time to act on air travel fees is now,” concluded Morrison.

The report can be found here.

 

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.

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