Soaring fuel prices are creating turbulence across Canada’s airline sector, and could cost WestJet an extra $1.6 billion next year if they remain at current levels throughout 2027, says the company’s head.

But WestJet CEO Alexis von Hoensbroech says a federal government loan program announced earlier this year isn’t the right answer, and reiterated his call for Ottawa to develop a national aviation strategy.

Speaking Thursday at the Calgary Chamber of Commerce, the head of Canada’s second-largest airline discussed challenges facing the industry, including jet fuel prices that have skyrocketed amid a war in the Middle East, and a decrease in the number of Canadians travelling to the United States.

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Fuel prices are one of the most daunting issues, as they can typically make up about 20 to 25 per cent of an airline’s cost base, and often can’t be immediately passed through to consumers.

“If you look at the geopolitical landscape, I think we have to assume that this high fuel environment will stay for longer, and may even get worse. So this is not a short-term bump in the road. This is potentially a new normal, at least for foreseeable future,” von Hoensbroech told reporters after the event.

“We should assume that fuel prices will stay high, elevated, for an extended period of time, well into ’27, maybe into ’28, and this will impact airlines on a global scale quite significantly.”

According to data tracked by the International Air Transport Association, jet fuel prices last week were up a whopping 119 per cent from the........

© Calgary Herald