NAV CANADA releases proposal to revise service charges

OTTAWA, ON, May 22, 2026 /CNW/ - NAV CANADA today released for engagement a proposal to revise customer service charges, effective September 1, 2026. The proposal calls for increased service charges averaging 1.92% across service categories. The overall average net increase in service charges includes an average Base Rate increase of 2.04% and an average Temporary Rate decrease of 2.25% compared to existing rates.

Geopolitical tensions including the escalated conflict in the Middle East, energy-price volatility, trade frictions, and evolving global economic conditions are affecting air traffic demand and NAV CANADA's cost base. Despite continued downside critical uncertainties, NAV CANADA must remain forward-looking and continue to invest in service delivery, operational training, and modernization. These investments are essential to maintaining safe, reliable, and high-quality service, while driving long-term efficiencies for both customers and NAV CANADA.

In addition, the COVID‑19 pandemic caused an unprecedented decline in global air traffic, resulting in a material deficit in NAV CANADA's Rate Stabilization Account (the "RSA"), given the largely fixed nature of its cost base. In response, NAV CANADA adopted a gradual, multi‑year approach to recover this balance in a manner that supports industry stability. While the immediate impacts of the pandemic have subsided, recovery of the RSA deficit and ongoing debt reduction remain key priorities in strengthening the Corporation's financial resilience.

NAV CANADA applies a long-term rate-setting approach, using the RSA to absorb short-term fluctuations in air traffic and expenses and support stable and predictable rates for customers. As the remaining deficit is recovered, the RSA will be progressively restored over time.

The proposed rate adjustments reflect this balanced approach: addressing current financial requirements, supporting recovery of prior-period balances, and enabling continued investment in critical infrastructure while maintaining rate stability for customers.

There are two elements to this rate adjustment proposal:

• (i) a proposed average increase to Base Rates to recover NAV CANADA's anticipated costs by service category during fiscal 2027 and to enable a gradual and sustainable rebuild of the RSA account in each service category to their target levels within the outlook period of fiscal 2028 to fiscal 2031; and,
• (ii) a proposed average decrease to Temporary Rates to adjust the amount of the pandemic-related RSA shortfall to be recovered in fiscal 2027, allowing NAV CANADA to remain on track with its plan to recover the RSA shortfall over a 5-year period by the end of fiscal 2028.

Despite ongoing cost pressures driven by global economic conditions, supply chain constraints, infrastructure demands, and labour market dynamics, NAV CANADA is applying a measured, long‑term approach to rate setting. Rather than fully reflecting these pressures in service charges in the near term, the Corporation is leveraging its established framework to moderate their impact over time. This approach supports more gradual and predictable rate adjustments, resulting in a proposed increase that remains within inflationary levels.

This disciplined approach continues to balance current financial requirements with the stability of the broader aviation system, while a projected RSA shortfall of $65M at the end of fiscal 2027 will be addressed over future periods.

"We know airlines currently face intense cost pressures. That is why we manage the air navigation system with strict financial discipline and apply our governing service charge principles judiciously, even as we make critical investments in staffing and infrastructure renewal," said Mark Cooper, President and CEO, NAV CANADA.

"As NAV CANADA approaches its 30^th anniversary as Canada's air navigation service, our unique not-for-profit model has stood the test of time. NAV CANADA maintains one of the top safety records globally while its cost efficiency and productivity consistently rank in the top quartile amongst leading ANSPs."

The proposal is subject to the mandatory 60-day engagement period required by legislation. Input received during the engagement period will be considered by NAV CANADA's management and Board of Directors, prior to a final decision being made on the proposal. 

Details of NAV CANADA's proposed revised service charges are available here:

View: - Notice of Revised Service Charges [PDF]

View: - Details and Principles Regarding Proposed Revised Service Charges [PDF]

Caution Concerning Forward-looking Information

This news release contains "forward-looking statements" within the meaning applicable to Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "proposes", "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". NAV CANADA is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. NAV CANADA cannot assure that actual results will be consistent with these forward looking statements and NAV CANADA assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances, except as required by applicable legislation.  

About NAV CANADA

NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.

The Company is internationally recognized for its safety record and technology innovation.

SOURCE NAV CANADA

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