Transat as well as Porter Airlines have secured loans from the federal government as sharply higher jet fuel prices put added pressure on airline operating costs.

As announced in July, Transat has borrowed $150 million while Porter has received $125 million, through the Canada Enterprise Emergency Funding Corporation (CEEFC), according to The Globe and Mail.

The federal government launched the loan program in June to help Canadian airlines facing temporary liquidity pressures tied largely to volatile aviation fuel prices amid the war and tensions disrupting oil shipments through the Strait of Hormuz.

The Globe and Mail reports that U.S. Gulf Coast jet fuel prices reached US$4.19 per gallon on Tuesday, their highest level since late May, according to the U.S. Energy Information Administration. S&P Global data showed jet fuel prices rising 9% week over week, with European prices averaging close to US$4.29 per gallon.

The four-year federal loans are intended to help eligible airlines manage elevated operating costs, according to CEEFC. Both Porter and Transat are also continuing to repay loans issued during the COVID-19 pandemic.

Air Canada suggested earlier in the summer it would not need to draw on the new aid, while WestJet said it “strongly opposes” the move because of its market-distorting effects.

Transat’s Q3 2026 results come out tomorrow, Sept. 10.

Source: Travelweek