Alexis von Hoensbroech, the CEO of WestJet, just gave an incredibly smart speech on the indispensable role that air travel plays in Canada. He too touched on the great fiscal strains that are weighing heavily on the airline industry. He thundered for a reset on federal policies. For many communities located far from economic opportunity or essential services, air travel is not a luxury—it’s their only lifeline to the outside world.
At the end of his presentation, von Hoensbroech asked an interesting question. He inquired why federal assistance subsidizes other transportation infrastructures, such as bridges and commuter rail systems, while the airline industry is still forced to carry the burdens. He emphasized that all sorts of fees levied by the government somehow end up costing consumers. For domestic travelers in Canada, the costs quickly add up. Sales tax, navigation fees, airport improvement fees, and security fees add up to $133 on a typical round-trip ticket. At the other end of the world, American travelers contend with an average $49 in such fees.
“If the government wants to unite Canada and take down internal trade barriers, then reducing the cost of air travel by reducing fees that are imposed on air travel and ultimately make tickets cheaper would be the right thing to do,” – Alexis von Hoensbroech
In his public comments, von Hoensbroech went to the mat about treating air travel as an essential service. He thinks that’s just wrong in principle for it not to be treated that way. He further reiterated that hundreds of thousands of Canadians depend on aviation as their lifeline to vital services and markets. Business leaders are unanimously urging Canada to eliminate internal trade barriers. In particular, they seek to strengthen the country’s international profile.
We caught up with WestJet CEO Alexis von Hoensbroech for his take on the travel environment right now, including how Canadian travelers are changing their habits. Nearly a third—or as much as 30% less cross-border travel—based on airline bookings, down “mid-to-high-teens percentage points” relative to last year. Traffic quickly turned into a new direction, mainly European and Caribbean destinations. O’Reilly wrote about that last month, after Statistics Canada reported a large increase in returning Canadians, who have plummeted by 20 percent since April 2024. In concert, American visitors to Canada crumbled, plunging by a dramatic 5.5 percent.
“What we have seen in the past in our industry is that whenever there’s a change in demand patterns for political reasons, it’s usually transitional and long-term demand trends usually flow back to where they were in the past,” – Alexis von Hoensbroech
Despite these challenges, von Hoensbroech noted positive indicators from the U.S. market, expressing optimism that it is beginning to recover. Further, he recognized the highly competitive context of his address, which happened to occur at the same time as King Charles’ throne speech in Ottawa. Echoing the monarchy’s recent tone, he drew on themes of economic inclusivity and the hardships many Canadians are currently facing.
“But the King actually said today, ‘The government is guided by conviction that the economy is only truly strong when it serves everyone’ and many, many Canadians are struggling to get ahead,” – Alexis von Hoensbroech
Von Hoensbroech finished with an appeal to act now that was almost pleading. He was clear that aviation is central to determining the future of Canada. Further, he claimed that government assistance could go a long way in making air travel more accessible for all Canadians.
“We need to build Canada — now even more than in the past — and aviation plays a key role,” – Alexis von Hoensbroech
