Porter Airlines and Air Transat have drawn a combined C$275 million from a federal emergency financing programme as elevated jet-fuel prices squeeze operating margins in Canada. Porter received C$125 million, while Air Transat took C$150 million, the maximum available under the scheme.
The Liquidity for Airline Sector Resilience facility was launched in June to provide repayable support to eligible Canadian passenger airlines facing temporary liquidity pressure from fuel-price volatility. Ottawa tied the measure to a sharp rise in aviation fuel costs linked to conflict in the Middle East and disruption to oil flows, which has raised pressure on carriers’ networks, cash flow and pricing.
The loans are intended for airlines that remain viable but need short-term liquidity to bridge higher operating costs. The programme comes alongside broader federal support measures for the sector, including a temporary cut in the aviation fuel excise tax earlier this year.
The latest financing underscores the strain on smaller Canadian carriers as fuel costs remain volatile, even as some larger operators have not taken part in the facility.