Flair Airlines CEO Len Corrado is feeling the heat of high jet fuel prices, as he steers the budget carrier away from a recent strategy targeting business travellers and the United States.
Corrado, who stepped into the top spot in February, says aviation fuel typically makes up nearly a third of Flair’s costs—and the price of that fuel has shot up by more than 110 percent from a year earlier.
The former Sunwing president says the situation is “hard to navigate,” with an increase in fares failing to make up for the soaring expense.
Corrado says the Edmonton-based discount airline has expanded its presence domestically and in the Caribbean while cutting its Canada-U.S. flight numbers by more than 50 percent since last year as Canadians continue to spurn U.S. travel.
The industry veteran also says Flair is focusing on personal trips and turning away from plans earlier this year to home in on small business travellers.
Earlier this month, the federal government approved $76 million in emergency aid for Flair, making it the third airline after Air Transat and Porter Airlines to secure a bailout from Ottawa in the past two months as jet fuel prices bleed money from carriers.
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