# WestJet and Air Canada Fuel Cost Concerns

> WestJet warns of rising fuel costs as Air Canada cuts 2026 outlook.
- Title: WestJet and Air Canada Fuel Cost Concerns · Financial Post
- Summary: WestJet warns of rising fuel costs as Air Canada cuts 2026 outlook. WestJet and Air Canada report higher fuel costs impact operations and financials amid…
- Keywords: westjet, air canada, fuel costs, aviation, canada, financial outlook, fuel price volatility, Financial Post
- Source: Financial Post — https://financialpost.com/transportation/airlines/westjet-sounds-alarm-high-fuel-costs-air-canada-lowers-outlook
- Author: Denise Paglinawan
- Published: 2026-10-30T16:35:09+00:00
- Read time: 1 min
- Topics: westjet, air canada, fuel costs, aviation, canada, financial outlook, fuel price volatility, money, business
## WestJet CEO warns on fuel costs
WestJet Group CEO Alexis von Hoensbroech spoke about high fuel costs and the aviation industry's ability to absorb price shocks.

> Canada's aviation system has very few shock absorbers left
## Air Canada cuts 2026 outlook
Air Canada reduced its full-year guidance to between $2.4 billion and $2.7 billion in adjusted EBITDA from $2.9 billion to $3.2 billion.
## Fuel price impact on airlines
Fuel costs doubled due to transborder demand slowing, Cuban leisure market closure, and geopolitical tensions.
## Air Canada's financial results
Air Canada reported record third-quarter operating revenues of $7 billion and beat revenue expectations.
## WestJet's market imbalance concerns
WestJet says the industry faces a growing market imbalance and thin margins to absorb fuel cost increases.
## Government funding impact
WestJet criticizes federal loans to airlines as undermining industry competition and financial health.

> we fundamentally believe that governments should not intervene in markets if they want a healthy and competitive industry
## Fuel cost absorption challenges
Airlines can recover only part of fuel cost increases through fares, leaving thin margins to absorb the rest.
## Key takeaway

WestJet and Air Canada report higher fuel costs impact operations and financials amid Canada's aviation sector challenges.