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Airlines Slash Flights as Jet Fuel Costs Surge, Squeezing Travellers and Markets

  Airlines Slash Flights as Jet Fuel Costs Surge Canadian travellers are facing fewer flight options and higher fares as jet fuel prices spike to multi‑year highs , forcing Air Canada and Air Transat to cut capacity across key routes. The surge in fuel costs is tied directly to the ongoing Iran conflict , which has disrupted global oil flows and pushed energy markets into another period of volatility. Air Transat is reducing service to Europe and the Caribbean, while Air Canada is suspending several regional and international routes it now considers unprofitable. For consumers, this means higher ticket prices, more crowded flights, and fewer choices heading into the summer travel season . Impact on the Economy and Inflation Airlines passing fuel costs to passengers adds fresh pressure to Canada’s already‑stubborn inflation outlook. Travel inflation — which had been easing — is now expected to rise again, complicating the Bank of Canada’s path toward rate cuts. Higher travel costs a...
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Canadian Manufacturers of COVID-19 Protective Equipment Sue Ottawa for $5 Billion in Damages

 

Canadian manufacturers who produce masks and other protective equipment to combat COVID-19 are pursuing legal action against the federal government, seeking more than $5 billion in damages. Their claim alleges that Ottawa misled them regarding the purchase and promotion of their products.

In a statement of claim filed in Federal Court, the companies and their industry association assert that the government made “negligent misrepresentations” that led them to invest in personal protective equipment innovations, manufacturing, and production. These misrepresentations spanned a three-year period starting in March 2020. The companies and the Canadian Association of PPE Manufacturers contend that the government provided misleading information about markets, direct assistance, flexible procurement, and long-term support.

The Canadian government had communicated through an initiative called Canada’s Plan to Mobilize Industry to fight COVID-19 that there would be new measures to directly support businesses in rapidly scaling up production or retooling their manufacturing lines. However, despite identifying masks and respirators as vital items for an airborne pandemic, the government did not contract with the Canadian companies, invoking a national security exception for procurement. Furthermore, in June 2021, the government allegedly promised a 10-year contract with the industry association and businesses to compensate for not purchasing protective equipment from domestic firms.

The companies claim that these misrepresentations resulted in approximately $88 million in investment losses and a further $5.4 billion in projected lost market opportunities over a ten-year period. They emphasize that this promise came from the highest levels of the Canadian government and was propagated across all relevant departments.

As the court case proceeds, the federal government will have an opportunity to respond to these unproven allegations. The manufacturers’ “special relationship” with the government, born out of a duty of care to small- and medium-sized businesses, underscores the significance of this legal battle.

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