# Canadian energy costs and aviation sector strain > Live situation record from CLSTR: https://clstr.news/situations/canadian-energy-costs-and-aviation-sector-strain > Updated: 2026-09-15T14:16:13.000Z. Sources: 6. Developments: 2. Rising global energy costs are causing significant economic strain in Canada, particularly affecting the aviation and transportation sectors. High fuel prices, attributed to geopolitical conflicts involving Iran, have led to substantial net losses for carriers. Transat A.T. has received federal financial support to manage these costs, including a 250 million dollar emergency low-interest loan through the Canada Business Emergency Support Corporation. Specific details regarding the Liquidity for Airline Sector Resilience (LASR) program indicate that a 125 million Canadian dollar tranche was provided in late July, with further funds available based on fuel fluctuations. Additionally, subsidiary Flair Airlines has been allocated 80 million Canadian dollars to support its operations. Beyond aviation, skyrocketing diesel prices—averaging $2.62 per litre—are threatening to increase grocery costs as trucking companies face higher primary expenses. ## Timeline ### 2026-09-15: Air Transat secures Canadian federal funding amid rising fuel costs Air Transat has secured up to 150 million Canadian dollars in federal funding to combat rising fuel costs and revenue losses from declining Cuba routes. 3 sources. https://clstr.news/cluster/air-transat-secures-canadian-federal-funding-amid-rising-fuel-costs ### 2026-09-12: Canada energy crisis impacts aviation and food costs Rising energy and diesel prices are straining the Canadian economy, forcing airlines like Transat to seek federal emergency financing and threatening higher grocery costs due to increased trucking expenses. 3 sources. https://clstr.news/cluster/canada-energy-crisis-impacts-aviation-and-food-costs --- Cite as: Canadian energy costs and aviation sector strain. CLSTR, https://clstr.news/situations/canadian-energy-costs-and-aviation-sector-strain