Canada cuts fuel, gas taxes for airline sector—introduces 'emergency loan program

Canada has decided to give fuel relief to its airline sector amid global fuel and energy crises.

The Government of Canada has temporarily removed the federal fuel excise tax from April 20 to September 7, 2026, reducing costs by 4 cents per litre on aviation fuel, alongside broader relief of 10 cents per litre on gasoline and 4 cents per litre on diesel.

Global conflicts and supply disruptions have contributed to significant volatility in energy markets, driving up fuel prices and creating uncertainty across the global aviation sector, including in Canada.

Canada's airline sector plays a critical role in connecting communities, supporting tourism, facilitating trade, and ensuring Canadians can travel safely and reliably across our vast country.

The Liquidity for Airline Sector Resilience facility will provide timely, targeted and temporary support to help airlines manage exceptional fuel-cost pressures, maintain operations and jobs, and preserve a competitive airline sector that Canadians rely on for affordable travel options.

Moreover, the Canadian government is taking further targeted action to support stability in Canada's airline sector during this period of elevated fuel prices.

The Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, announced the launch of the Liquidity for Airline Sector Resilience facility, a new loan program through the Canada Enterprise Emergency Funding Corporation CEEFC.

The facility will offer eligible Canadian airlines experiencing significant financial pressures resulting from elevated jet fuel costs up to $150 million in repayable liquidity support, on an as-needed basis.

This comes as elevated jet fuel prices have majorly increased operating costs across the global aviation sector, placing additional pressure on airlines as they navigate ongoing market volatility.

The Liquidity for Airline Sector Resilience facility is designed to respond directly to the financial costs of this challenge by linking support to both the increase in the price of jet fuel and the fuel consumption levels of Canadian airlines.