New Report: Regional Air Service Crucial to Canada’s Economic Future, Connectivity and Way of Life

Ottawa, ON, May 26, 2025 The Canadian Airports Council (CAC) is encouraging federal and provincial governments to consider measures that will strengthen and support Canada’s regional air service, following the release of a comprehensive new study on the state of regional connectivity across the country. Prepared by InterVISTAS Consulting and commissioned by the CAC, the report entitledKeeping Canada Connected: The Challenge of Regional Air Service and Federal Policy [summary report here] examines the importance of regional air service and reveals a trend line that is accelerating in the wrong direction.

“Air service is the backbone of connectivity for many parts of Canada—essential to interprovincial trade, economic growth, and everyday life,” said Monette Pasher, President of the Canadian Airports Council. “Regional air service is more than business, it connects Canadians to healthcare, education, trade and economic opportunities, and we need to work together to create the framework of support that is required to build our nation and connect Canadians in all corners of our country.”

Key Findings:

  • Flight frequency at regional airports is down 36% since 2014. From 2019 to 2024, regional airports experienced a 10% drop in domestic connectivity (International Air Transport Association, IATA, Index), and a 14% drop in overall connectivity (domestic + international).
  • A single regional route operating daily can generate over 125 jobs and create an impact of $40 million in economic output annually.
  • Regions hardest hit include Alberta, Manitoba, and parts of Atlantic Canada.

The report assessed 51 regional airports across the country and found that while some—like Whitehorse in the Yukon—have seen gains due to targeted support and competition from local carriers, the remainder have experienced reductions in air service frequency, often leaving communities with only one or two daily flights. The resulting lack of flexibility, limited connection options have had a ripple effect on regional economies and access to essential services. The report argues this gap cannot be closed without policy intervention.

“Airlines are operating private businesses, and they need to optimize that business, this is about the social mandate of air travel in this country,” said Pasher. “In many parts of the country, air travel isn’t a luxury—it’s a necessity. It’s the fastest, safest, and often the only way to connect people, goods, and services. This is about economic resilience and national unity. By working together with government, we can reverse this trend.”

To effectively address this downward trend, the report puts forward a strong set of policy recommendations, with two key priorities:

  • Establishing an Essential Air Service program to support communities nationwide
  • Investing in airport infrastructure for regional airports to strengthen the broader aviation ecosystem

Currently, Canada trails peer countries in this area. Since 1995, the U.S. has invested 8.5 times more per capita in airport infrastructure than Canada. While Canada’s approach has focused primarily on letting market forces dictate air service availability, other countries use a mix of infrastructure funding, direct airline support, and passenger subsidies to maintain access in smaller markets.

“The question isn’t whether we can afford to support regional air service, it’s whether we can afford not to,” said Pasher. “A connected Canada is a competitive, equitable, and united Canada.”

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About the Canadian Airports Council

The Canadian Airports Council (CAC), a division of Airports Council International-North America, is the voice for Canada’s airports community. Its 60 members represent more than 100 airports, including all of the privately-operated National Airports System (NAS) airports and many municipal airports across Canada.

Canada’s airports support 435,800 jobs, providing $32.9 billion in annual wages, generating $49.6 billion in GDP and producing $123.5 billion of annual economic output.

For more information, please contact:

Julie Pondant, Canadian Airports Council

julie.pondant@cacairports.ca