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The new Liquidity for Airline Sector Resilience, LASR, will provide liquidity support to Canadian airlines and mitigate impacts on affordability and financial stability of airlines

Toronto, June 8, 2026— Global conflicts and supply disruptions have created volatility in energy markets and have led to a rapid, significant and sustained increase in fuel costs.  This has disrupted global aviation, adding pressure to the Canadian airline sector, a strategic industry for Canada’s economic sovereignty.

Today, the Canada Enterprise Emergency Funding Corporation (CEEFC), a subsidiary of Canada Development Investment Corporation (CDEV), stood up a new loan facility for commercial passenger airlines experiencing financial challenges from the current energy shock. The Liquidity for Airline Sector Resilience (LASR) facility will provide liquidity support to eligible Canadian airlines by providing temporary, as-needed, bridge financing up to $150 million, specifically to offset the impacts of fuel price increases. This support will reduce the amount of increased fuel costs passed down to passengers, thereby supporting affordability, protecting the market demand for air travel, protecting jobs, and maintaining routes and service levels.

Core elements of the new program are as follows:

• Borrowers will have access to funds based on their operational and liquidity needs with funds drawn in amounts specifically tied to fuel price increases.
• The schedule for loan paybacks will be four years, at rates above Canada’s cost of borrowing, but at rates favourable relative to market rates for affected companies.
• Funds through this facility will be available until November 1, 2026.

The LASR facility includes requirements to protect the interest of Canada’s economy, including maintaining routes, protecting employment levels, placing restrictions on executive pay, and use commercially reasonable efforts to increase sales to and purchases from Canadian markets.

“Since 2020, CEEFC has a proven track record of supporting large enterprises in Canada, including airlines,” said Lorraine Audsley, President and CEO of CEEFC. “We will approach this new repayable loan facility with the same commitment to commercial principles, economic security, and sound stewardship of public funds – to support a strong airline industry and the workers that rely on these jobs.”

“CDEV and its portfolio companies like CEEFC exist to support Canada’s economy and the government on urgent transactions for critical financial and commercial needs. We are ready to stand up this new loan facility for this strategic industry, ensuring that the broader Canadian economy benefits from CDEV’s rapid execution and commercial expertise,” said Elizabeth Wademan, President & CEO of CDEV.

CEEFC will negotiate terms and conditions with each applicant to ensure the loans are commercially sound and in the interests of Canada.

 Quick facts 

• CDEV provides the Government of Canada with specialized financial advisory around the country’s most complex and diverse commercial interests. For over 40 years, CDEV, a federal Crown corporation reporting to the Minister of Finance, has been the entity of choice for critical financial transaction needed to help Canada achieve its goals and maximize the value of government corporate assets. 
• Established in 2020 by CDEV, CEEFC currently manages the Large Employer Emergency Financing Facility (LEEFF) program in response to the economic impact of the COVID-19 pandemic, the Large Enterprise Tariff Loan (LETL) facility to support large Canadian enterprises affected by actual or potential tariffs and countermeasures, and the Liquidity for Airline Sector Resilience (LASR) facility for commercial passenger airlines experiencing financial challenges from the current energy shock.