Canada boosts airports with federal budget support

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The Canadian Airports Council welcomes federal funding for trade diversification, infrastructure, and regional airport growth, strengthening connectivity, economic resilience, and long-term investment stability.

The Canadian Airports Council (CAC) has welcomed the federal budget (4 November 2025), which emphasises trade diversification, infrastructure, and economic growth. Canada’s airports are critical national assets, connecting people and goods while supporting trade, tourism, and regional development across the country.

“Airports are at the heart of Canada’s growth story,” said Monette Pasher, President of the Canadian Airports Council. “We are pleased to see the federal government’s recognition of airports’ role in trade diversification and economic resilience. Investments in trade and infrastructure will help strengthen our competitiveness and create opportunities across every region of the country.” The budget includes five billion dollars through the Trade Diversification Corridors Fund (TDCF), enabling airports to strengthen new trade flows and drive economic growth.

Since the early 1990s, Canada’s airports have been managed by local airport authorities as non-share capital corporations, divested from direct federal operation. This model has allowed airports to operate as businesses, reinvesting billions into infrastructure and positioning themselves as key trade and transportation hubs. CAC expressed interest in the government’s potential considerations regarding airport privatisation. “There are many ways to work with pension funds and equity partners, and any options government considers must have affordability for Canadians as the top priority,” Pasher noted.

While travel demand has largely returned to pre-pandemic levels at major hubs, regional and northern airports have not fully recovered, leaving communities and businesses vulnerable to reduced air service. These airports are vital for regional connectivity, medical access, and safe transportation in remote regions, reinforcing Canada’s presence and sovereignty in the North.

CAC also applauded the federal government’s increased support of $55 million for the Airports Capital Assistance Program (ACAP), the only dedicated federal funding source for essential infrastructure at small and regional airports. With ACAP funding largely unchanged for 25 years, this boost is critical to ensure safety, reliability, and long-term sustainability at regional airports.

In addition, government investment to advance technology, automation, and modernise processes under Transport Canada is expected to improve travel experience, enhance efficiency, and support growing passenger volumes. Airports also anticipate the implementation of a 50-year ground lease extension in early 2026, providing long-term investment stability and enabling shovel-ready capital projects that benefit both airports and the communities they serve.

“With continued partnership and investment, Canada’s airports can drive growth, enhance connectivity, and strengthen our role as gateways to global trade,” Pasher added. “We look forward to working with the government to ensure our airports remain safe, competitive, and ready to meet the needs of Canadians.”

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