Canada’s Air Travel Challenges: A Call for Change
On May 27, 2025, during a meeting with the Calgary Chamber of Commerce, WestJet’s CEO, Alexis von Hoensbroech, shared his views on the state of Canada’s air travel industry. He strongly argued that air travel in the country should no longer be seen simply as a luxury but as an essential service. Von Hoensbroech highlighted the need for immediate government action to make air travel more affordable, particularly through reducing the fees that passengers are required to pay on their tickets.
The Critical Role of Air Travel in Canada
Due to Canada’s vast geography, air travel is indispensable for many remote and underserved communities that depend on flights as their only connection to the outside world. Von Hoensbroech pointed out that the fees associated with flying are alarmingly high, with sales tax, airport improvement fees, security charges, and navigation fees amounting to $133 on every ticket. This cost, he argued, is substantially higher than in the U.S., where similar charges are only $49. He emphasized that reducing these additional charges could significantly lower ticket prices, making air travel more accessible to many Canadians who currently cannot afford it.
The Need for Lower Fees
The WestJet CEO’s primary argument centered around reducing the government-imposed charges on airline tickets. He suggested that if the fees were adjusted to the levels seen in the U.S., it would not only make air travel more affordable but also encourage greater demand for flights across Canada. According to Von Hoensbroech, such a shift could create the conditions necessary for the emergence of another airline comparable in size to WestJet, thereby increasing competition and further driving down prices. In his view, lowering fees would be a key step toward connecting Canadians more effectively and enabling more people to travel by air.
The Rising Cost of Air Travel
While WestJet has reduced its base fares by nearly half in the past 30 years when adjusted for inflation, government taxes and fees have risen sharply—by approximately two-thirds. This increase in charges, according to Von Hoensbroech, has created significant barriers to air travel. Canada ranks poorly in terms of air ticket price competitiveness, coming in at 101st out of 119 countries in a World Economic Forum study. He stressed that this ranking is not a reflection of airline pricing strategies but rather the excessive taxes and charges imposed on the industry. For many Canadians, these costs are simply too high to justify flying.
Regulatory Challenges and Passenger Compensation
Beyond ticket prices, Von Hoensbroech also raised concerns about other regulatory issues affecting air travel, particularly the matter of passenger compensation for flight delays. Currently, passengers are entitled to compensation if their flight is delayed, but the WestJet CEO proposed that customers should have the option to choose between receiving compensation or opting for a lower fare. This would provide consumers with more flexibility and the potential to save money, benefiting those who prioritize affordable travel over compensation.
Additionally, he suggested that there needs to be a broader review of the financial structure that supports Canada’s air sector. Unlike the rail and ferry industries in eastern Canada, which receive substantial government funding, airlines are left to shoulder the burden of operating costs almost entirely on their own. Von Hoensbroech argued that while Ottawa should not directly subsidize the airline industry, the government should learn from best practices abroad and explore ways to reduce the cost burden on air carriers. This approach could ensure the long-term sustainability of the Canadian aviation industry.
The Imbalance in Infrastructure Funding
The CEO noted that Canada’s air sector is unique in its dependence on user fees. Other modes of transportation, like rail and ferry services, benefit from government subsidies, but airlines do not. Von Hoensbroech stressed that this imbalance could eventually pose a problem for the sector’s growth, especially as Canada continues to expand. A more equitable distribution of funding across different transportation sectors could help keep Canada’s aviation industry competitive and viable in the years to come.
The Risk of U.S. Tariffs
Another pressing issue discussed by Von Hoensbroech was the potential impact of U.S. tariffs on Canadian airlines. While passenger tickets are exempt from tariffs, WestJet faces challenges due to its agreements to purchase aircraft from Boeing. Each Boeing 737 costs over US$100 million, and any tariffs imposed by the U.S. on these planes would increase their cost by as much as 25%. With WestJet expecting more than 20 aircraft deliveries in the coming year, the financial impact of such tariffs could be substantial, affecting the airline’s operational strategies and potentially raising ticket prices for consumers.
Decline in Cross-Border Travel
In addition to the financial pressures facing the airline industry, Von Hoensbroech also addressed the shifting travel patterns between Canada and the U.S.. There has been a noticeable decline in cross-border travel, particularly to the U.S., due to several factors including trade tensions, border security issues, and changing political landscapes. According to Von Hoensbroech, Canadian bookings for flights to the U.S. have dropped by a mid-to-high-teens percentage compared to the previous year. In response, many Canadians are opting to fly to destinations like Europe and the Caribbean, which has prompted Canadian airlines to reassess their cross-border operations.
Shifting Perceptions of U.S. Travel
This downturn in U.S. travel is part of a broader trend of changing public sentiment toward the U.S.. Factors such as controversial trade policies under former U.S. President Donald Trump, border security issues, and growing concerns about national security have led many Canadians to reconsider their travel plans. As a result, Canada has seen a decline in the number of travelers heading south, with some opting instead to explore other destinations both within Canada and internationally.
Impact on the Canadian Travel Industry
The decline in cross-border traffic has significant implications for the broader travel industry. According to Statistics Canada, Canadian arrivals in the U.S. dropped by 20.2% recently, while air travel from Canada to the U.S. fell by nearly 20% as well. This has forced Canadian airlines, including Air Canada, to rethink their flight routes. Air Canada, for instance, has decided to cancel five of its key routes to the U.S. for the 2025–2026 winter season.
A Crucial Crossroads for Air Travel in Canada
In conclusion, Canada’s air travel sector is at a critical juncture. The high costs associated with government fees, combined with the increasing regulatory burden and shifting international sentiment, are putting tremendous pressure on the system. Von Hoensbroech’s call for lower fees, a review of the funding structure, and greater flexibility for passengers are vital steps that could help improve affordability and accessibility. If left unaddressed, these challenges could have lasting consequences not only for Canada’s aviation industry but for the broader global travel market as well. The long-term effects of these changes will likely be felt across international routes, reshaping the demand and competition among airlines worldwide.
The post WestJet CEO Alexis von Hoensbroech Pushes for Affordable Air Travel, Fee Cuts, and Warns of Tariff Challenges as U.S. Travel Demand Declines Here’s Everything You Need to Know About the Latest Air Travel Insights appeared first on Travel And Tour World.