Budget airlines under serious strain from sky-high fuel costs: Flair CEO

Flair Airlines CEO Len Corrado is grappling with the impact of soaring jet fuel costs, which have surged by over 110% in the past year, accounting for nearly a third of the budget carrier's expenses. The Edmonton-based discount airline, which has shifted its focus away from business travellers and the United States, is struggling to navigate the financial strain.

Corrado, who took the helm in February, acknowledges that raising fares is insufficient to offset the skyrocketing price of aviation fuel. To counteract the financial pressure, Flair has expanded its operations domestically and in the Caribbean, while reducing its Canada-U.S. flight numbers by more than 50% since last year. In response to the mounting challenges, Flair has received $76 million in emergency government aid, making it the third airline to receive a bailout from Ottawa in recent months.