Provincial subsidy fund for Winnipeg flights to L.A., Atlanta runs dry
WestJet already reconsidering transborder connections in light of reduced Canadian interest in U.S. travel
A Manitoba provincial fund set aside to subsidize WestJet flights between Winnipeg and two U.S. cities has run out of cash, raising questions about the future of direct air connections between Winnipeg's Richardson International Airport and both Los Angeles and Atlanta.
A $4.8-million flight subsidy fund created by the former Progressive Conservative government under Heather Stefanson government is all used up, said Ryan Stelter, a spokesperson for Manitoba Premier Wab Kinew.
The fund, which was managed by the Winnipeg Airports Authority, will not be topped up with additional public money under the current NDP government, Stelter added.
"The previous government entered into $4.8-million agreement with the Winnipeg Airport Authority in June 2023 for flights to Los Angeles and Atlanta. That agreement … was honoured and paid out in full," Stelter said Wednesday in a statement.
The flight subsidy fund was originally envisioned to last until this October, Stelter said. Its demise comes at a time when trade tensions, economic uncertainty and anti-U.S. sentiment have already reduced Canadian demand for travel south of the border.
This, in turn, has prompted WestJet, Air Canada and Porter to cut back on some Canada-U.S. routes and muse about suspending or cancelling others.
WestJet said Wednesday it is reviewing its Canada-U.S. flight schedule for the summer months "due to the changing demand surrounding travel to the United States."
Details around adjustments will be finalized in the coming weeks, WestJet public relations manager Jen Booth said Wednesday in a statement.
WestJet has already announced new flights out of Winnipeg will start in July to serve Canadians seeking to travel to Europe and within Canada, said Booth.
That includes new flights between Winnipeg and St. John's added "to meet increased domestic and transatlantic travel demand," along with increased service between Winnipeg and Halifax, she said.
WATCH | Airlines look to add more European, Canadian flights:
Nick Hays, president and CEO of the Winnipeg Airports Authority, said the reduced demand for U.S. travel has not yet impacted his organization's bottom line.
He said it remains to be seen whether any cross-border flights from Winnipeg will be suspended or cancelled.
"Things are very fluid," Hays said Thursday, following the WAA's annual general meeting at Richardson International Airport.
"We're monitoring the situation very closely and we're obviously working very closely with all of our airline partners to understand the impacts, understand the shifting travel patterns, and understand what potential changes and capacity we might see here."
Hays said it's too soon to say whether the addition of more domestic flights out of Richardson could balance any potential loss of U.S. flights. The airports authority is also continuing to work on new direct connections between Winnipeg and destinations in Europe and Asia, he said.
Film industry lobbied for L.A. flight
Economic Development Winnipeg declined to comment Wednesday.
Manitoba Film and Music, which speaks on behalf of the film industry in this province, said Wednesday it has received no word of changes to the funding for the Winnipeg-Los Angeles flight and does not know what the impact of such a change would be.
The Manitoba film industry spent years lobbying successive NDP and PC governments to subsidize a direct Winnipeg-Los Angeles air connection.
"We are grateful to the province for their support in bringing the direct flight from L.A. to Winnipeg, as it had a positive impact on our ability to promote the film and television industry and bring production to Manitoba," Manitoba Film and Music CEO Lynne Skromeda said Wednesday in a statement.
Price Industries, a Winnipeg manufacturer whose U.S. head office is in an Atlanta suburb, did not respond to a request for comment Wednesday.
Price's Gateway Road facility served as the setting for the original announcement by Stefanson and WestJet about the start of direct flights to Atlanta.
Stelter said he is not aware of requests by the Winnipeg Airports Authority, WestJet or other entities to top up or extend subsidies for the Los Angeles and Atlanta flights.
Flights between Winnipeg and Los Angeles started in 2022. Winnipeg-Atlanta flights began the following year.
Former premier Stefanson joined WestJet's board of directors in 2024, after she left office, and is still listed as a member of the airline's board.
The Winnipeg Airports Authority, meanwhile, is heading into a period of uncertainty with a strong bottom line. Net income for the authority was $19.3 million in 2024, up from $14.9 million in 2023, according to financial statements posted Thursday.
The non-share capital corporation also reduced its long-term debt to $625 million at the end of 2024, down from $638 million the previous year.
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