Air travellers could end up paying the increased cost of airport fees, the CEO of Halifax-based Jazz Air Income Fund warned Friday.

Several Canadian airports are about to begin paying rent and policing costs to the federal government, and some airports are passing those on to travellers, Joseph Randall said, and that would make the Canadian airline industry less competitive.

Jazz Air's CEO warns consumers could end up bearing the costs of increased airport fees. (CBC)

Randall said the Ontario government is looking at an aviation fuel tax and Ottawa already has a tax on fuel.

"We are doing our part, as are many carriers, to reduce our costs and improve efficiency," he said. "We need all stakeholders to make the same commitment."

But McGill Prof. Karl Moore said airlines have also hit consumers with extra fees for services such as preferred seating. Consumers are the "cash cow" not just for airlines but also for airport authorities and governments that are all looking for ways to either make or save money.

"All three players — governments, airport authorities and airlines — are all under enormous pressure because of the recession," said Moore, who teaches at the university's Desautels Faculty of Management.

Randall made his comments during a conference call on the company's third-quarter earnings, released a day earlier, which showed a steep decline.

(With files from Canadian Press)