Issue

Alberta's regional air transportation network has experienced significant service reductions and route losses, leaving many communities with limited or no scheduled passenger air service. Communities such as Medicine Hat, Lethbridge, and Lloydminster have felt these impacts firsthand, as the continued erosion of regional air connectivity creates barriers to economic growth, business competitiveness, workforce mobility, tourism development, investment attraction, and access to national and international markets. As connectivity declines, so too do the opportunities that reliable air service provides to regional economies and communities

The loss of regional air service is not merely a transportation issue. It is an economic development challenge that affects the ability of businesses to compete, attract talent, retain investment, and support growth across Alberta's regions.

Background

Regional air service is a critical component of Alberta's transportation and economic infrastructure. It supports the movement of people, goods, services, and investment between communities and global markets. Regional connectivity enables business development, tourism, healthcare access, workforce mobility, education, and economic diversification.

Since 2019, regional air service across Alberta has experienced significant disruption due to industry consolidation, labour shortages, fleet constraints, changing airline business models, and economic pressures. These challenges have resulted in reduced flight frequency, diminished connectivity, increased travel times, reduced reliability, and in some cases, the complete loss of scheduled passenger service.

The consequences extend beyond passenger travel. Businesses across Alberta consistently identify air connectivity as an important factor in:

• Investment attraction and retention
• Corporate expansion decisions
• Workforce recruitment and retention
• Tourism growth
• Access to domestic and international markets
• Regional economic competitiveness

When air service is reduced or eliminated, businesses face higher travel costs, lost productivity, reduced access to customers and suppliers, and increased difficulty attracting investment and skilled workers. Communities also risk losing opportunities for economic development and population growth while becoming less attractive locations for future business investment.

Other jurisdictions have recognized regional air service as essential economic infrastructure and have established targeted programs to support route development, air service restoration, airport competitiveness, and long-term sustainability.

As Alberta continues to focus on economic diversification, rural growth, interprovincial trade, tourism, and investment attraction, regional air connectivity must be recognized as a strategic economic asset that requires coordinated support from all levels of government.

A 2024 survey showed that 90-95% of passengers use the large urban airports due to better schedules and fares with 75-80% loss of passenger traffic in regional areas. However, businesses have indicated a strong preference to regional flight service and a need for improved air connectivity to promote growth and economic development activity, as losing air service has proven to be a significant barrier to growth. 

Recognizing the need for a multi-level Government approach, strong provincial support of regional air service can also assist in retaining this vital service and economic driver in Alberta. 

Recommendations

The Southeast Alberta Chamber of Commerce recommends the Government of Alberta:

1. Develop and implement a Provincial Regional Air Connectivity Strategy focused on restoring, sustaining, and strengthening scheduled passenger air service in underserved and regional markets throughout Alberta.
2. Create a Regional Air Service Restoration and Sustainability Fund that provides route development incentives, risk-sharing mechanisms, revenue guarantees, and other support tools designed to encourage carriers to establish or maintain service in regional Alberta communities.
3. Recognize regional air service as essential economic infrastructure and incorporate regional air connectivity considerations into provincial economic development, tourism, labour force, and investment attraction strategies.
4. Work collaboratively with municipalities, regional airports, chambers of commerce, economic development organizations, Indigenous communities, and air carriers to identify solutions that improve regional connectivity and support long-term service sustainability.
5. Advocate to the Government of Canada for enhanced federal investment and policy support for regional air transportation, including modernization of existing funding programs and development of long-term national regional air service solutions.

Date Approved: February 12, 2025/September 16, 2026

Date Revised: August 12, 2026