Connecting Atlantic Canada by air to help our economy soar

From: Atlantic Canada Opportunities Agency

News release

The Government of Canada commits to strengthening regional air travel to support Atlantic Canada's economic growth, tourism, and connections.

March 12, 2025 · St. John’s, Newfoundland and Labrador · Atlantic Canada Opportunities Agency (ACOA)

Strong and reliable air connections are essential to Atlantic Canada’s prosperity, supporting economic growth, tourism, and competitiveness. They also play a key role in the health, social, and economic well-being of Atlantic Canadians, while connecting families, facilitating trade, and attracting talent to the region.

Reconnecting Atlantic Canada

Today, while attending the Hospitality Newfoundland and Labradore Conference and Trade Show, the Honourable Gudie Hutchings, Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency (ACOA), announced that the Government of Canada will provide up to $6 million over three years to help the four Atlantic provinces improve intra-regional air services.

Rebuilding air connectivity remains a priority as the sector continues to recover from the pandemic. Federal ministers and premiers commited to seek ways to increase the number of flights between Atlantic Canadian airports through the Atlantic Growth Strategy. This investment demonstrates the federal government’s commitment to increase flights between the region’s airports and strengthen air travel.

Reliable transportation links are critical to the region’s growth. This funding is a key step toward securing the long-term sustainability of regional air travel, driving business competitiveness and job creation in Atlantic Canada. 

Quotes

“More flights in and out of our airports means more opportunities—whether that’s attracting investment, boosting tourism, or just making it easier for people to get where they need to go. This funding from your federal government is all about reconnecting communities and making sure Atlantic Canada keeps growing and thriving.”

- The Honourable Gudie Hutchings, Minister of Rural Economic Development and Minister responsible for ACOA

Quick facts

  • In 2024, overall passenger traffic between Atlantic Canada and the rest of the country has recovered to pre-pandemic levels. However smaller regional airports in Atlantic Canada remain at 45%-65% of pre-pandemic levels. 

  • Air passenger travel within Atlantic Canada continues to be strained with only 55% recovery realized. 

  • ACOA also provided a non-repayable contribution of $770,965 to the Atlantic Canada Airports Association (ACAA) to help grow passenger and cargo service. With this support, the ACAA will host the 2025 Altitute East Conference in Charlottetown, which is the premier aviation event in Atlantic Canada; establish and grow connections with other airline partners; and use aviation data to plan strategic routes.

  • The funding announced today is conditional on a project application being submitted to ACOA and will be delivered through the Agency’s Business Development Program (BDP). The project must meet the BDP's eligibility criteria.

  • ACOA is prepared to cover up to 50% of the total project costs over three years, with the remaining funding shared by participating partners, including the Atlantic provinces. 

  • The full investment will go toward increasing the number of flights between airports in the region. Capital improvement or infrastructure projects are not eligible under this funding. 

  • Work is ongoing to confirm routes and operators, in consultation with partners and the Atlantic provinces.

  • Taking place March 11 to 13 in St. John’s, the Hospitality Newfoundland and Labrador’s Annual Conference and Trade Show offers tourism operators and stakeholders in the province an exclusive opportunity to grow their industry network, enabling further development of their business and driving tourism demand.

Associated links

Contacts

Connor Burton
Press Secretary
Office of the Minister of Rural Economic Development and of the
Atlantic Canada Opportunities Agency
Connor.Burton@acoa-apeca.gc.ca

Media Relations
Atlantic Canada Opportunities Agency
mediaroom-salledesmedias@acoa-apeca.gc.ca

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