CALGARY — WestJet CEO Alexis von Hoensbroech is doubling down on his earlier calls for a national aviation strategy as soaring fuel costs threaten to push Canadian airfares higher, with little relief potentially in sight for years.
Speaking to the Calgary Chamber of Commerce, von Hoensbroech warned that the airline is facing an additional $1.6 billion in annual fuel costs.
In an interview with CityNews, von Hoensbroech said those costs will eventually have to be reflected in ticket prices.
“People will have to expect that airlines will eventually have to recover the cost of fuel through ticket price. There’s no other way. You either recover your cost of doing business, or you’re out of business,” he said.
“WE ARE LITERALLY PAYING DOUBLE”
According to The Globe and Mail, WestJet’s fuel costs for 2026 could hit $3.2 billion. “Right now we are literally paying double what we paid a year ago,” said von Hoensbroech. “We have to work under the assumption that fuel prices will stay elevated. They may even go up further, and we work on the assumption that this will be true for all of 2027 and maybe into 2028.”
Von Hoensbroech also told the Globe the economic uncertain economic times has impacted the timing for WestJet Group going public. “An IPO requires a healthy environment, and the current environment is less healthy than it should be.”
He noted that while WestJet has raised fares, in line with competitors and along with airlines around the world, the airline has also opted to use cash reserves rather than raise fares even higher.
“THE FUEL STORY IS NOT ONLY ABOUT FUEL”
Fuel is only part of the problem.
In a separate statement, WestJet said rising fuel prices are exposing longstanding pressures on Canadian aviation, from airport charges and passenger-protection costs to taxes and regulatory requirements.
“That is why the fuel story is not only about fuel. Fuel is bringing to light what was already there: Canada’s aviation system has very few shock absorbers left,” said von Hoensbroech.
“WE ARE ASKING CANADA TO BE BOLD”
WestJet said Canada ranks 105th out of 119 countries for airline cost competitiveness. Airport improvement fees often reach $40 in Canada, compared with a US$4.50 cap in the U.S., while Canadian carriers also shoulder air-navigation costs.
The airline is also concerned about federal financing for competing carriers, arguing that government intervention puts self-funded airlines at a disadvantage. Air Transat and Porter Airlines have both secured loans from the federal government; Transat’s loan is worth $400 million and Porter’s is $125 million. This past summer Air Canada said it would not need to draw on the government aid, while WestJet has long maintained its opposition to the loans because of market-distorting effects.
Von Hoensbroech welcomed federal fuel tax relief but raised concerns about government loans and the possibility of higher airport fees if Canadian airports are privatized without stronger economic oversight.
Meanwhile, WestJet is accelerating the retirement of older, less fuel-efficient aircraft and will soon take delivery of its first of many B737 MAX 10s. Demand for Canada-to-U.S. travel remains down 25% to 30%, said von Hoensbroech.
“We are asking Canada to be bold and strategic in developing a National Aviation Strategy that advances the essential nature of aviation and leads to a competitive, affordable and healthy airline industry,” he said.
CALGARY AS A MODEL
WestJet pointed to Calgary as an example of what coordinated aviation investment can achieve.
The airline now serves more than 100 nonstop destinations from the city, nearly twice its pre-pandemic total.
An October 2022 agreement with Alberta established Calgary as WestJet’s sole global connecting hub, with subsequent investment including a Lufthansa Technik engine repair facility and CAE’s 126,000-square-foot training centre.
“Calgary didn’t get here by changing one policy. We got here by dreaming big together and lining up every decision behind that goal. Canada can do the same,” said von Hoensbroech.
