WestJet criticizes $376 million in government loans for Flair, Porter and Air Transat

Flair Airlines, Transat A.T. Inc. and Porter Airlines have been approved for a combined $376 million in repayable government loans through the Liquidity for Airline Sector Resilience (LASR) facility, according to the Canada Enterprise Emergency Funding Corporation (CEEFC).

The CEEFC said $76 million was approved for Flair, while Transat A.T. Inc. and Porter were each approved for $150 million. The corporation, a subsidiary of Canada Investment Corporation, confirmed the approvals to Daily Hive. The government created LASR in June 2026 as temporary support for airlines facing rising aviation fuel costs. It says loans are issued on commercial terms and based on demonstrated need.

Porter declined to discuss the loan agreement’s details but said it used the program to moderate the current effects of extreme fuel prices. Flair and Air Transat did not immediately respond to Daily Hive’s requests for comment. The CEEFC says it provides financing during periods of economic uncertainty while using appropriate terms, conditions and oversight to protect Canadian taxpayers’ interests.

WestJet has criticized the government’s decision to offer loans to Canadian airlines, arguing that such financing could distort competition. In a June 8 statement, the airline said the government must choose between continuing costly, market-distorting subsidies and building a sustainable future for Canadian aviation.

WestJet also cited the United States, saying its airlines face the same oil prices but the country has not bailed them out in the interest of fair, level competition. A WestJet representative told Daily Hive that the airline does not rely on government subsidies and believes airlines should be able to succeed independently. The representative said the government should instead address the underlying costs that hinder competition and make it harder to keep fares affordable for Canadians.