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A top Canadian official has revealed that the cost of acquiring a fleet of US-made F-35 stealth fighter jets has surged nearly 50% in just two years.
Some shit you should know before you read: If you’re unaware, Canada currently operates an aging fleet of CF-18 Hornet fighter jets, which first entered service in the 1980s and are now approaching the end of their operational life. To replace them, the federal government finalized an agreement in January 2023 to purchase 88 F-35A Lightning II stealth fighter jets from Lockheed Martin. The initial estimated cost of the full acquisition was approximately $19 billion, covering aircraft, training, and base upgrades. While Canada has committed to buying 88 jets, only 16 have been firmly contracted so far, and the government is currently reviewing whether to proceed with the remaining 72 or explore alternative options.
What’s going on now: In a notable development, Canada’s Auditor General revealed that the cost of acquiring the F-35 fighter jets has soared nearly 50% from initial projections. Karen Hogan’s audit found that the Department of National Defence (DND) relied on outdated 2019 data when it estimated in 2022 that the program would cost $19 billion, despite more recent figures being available. By 2024, the estimated cost had ballooned to $27.7 billion (an increase of $8.7 billion in just two years), and that figure excludes an additional $5.5 billion required for infrastructure, weapons systems, and support necessary to reach full operational capability.
Hogan attributed the cost surge to a mix of poor planning and external economic pressures. These include global inflation, supply chain disruptions, labor shortages, and volatile foreign exchange rates. Despite identifying these as risks, Hogan found that the DND failed to adequately monitor or approve plans to manage them. She stated, “While some of the reasons for higher costs are out of the government’s control, Ottawa is responsible for higher costs related to delays in building the infrastructure required for the new aircraft.” These delays include construction setbacks at key military bases in Cold Lake, Alberta, and Bagotville, Quebec, both of which are now more than three years behind schedule.
This all comes as Prime Minister Mark Carney has previously indicated that his government is reviewing the full F-35 purchase due to concerns about Canada’s overreliance on US military equipment, especially amid heightened trade tensions with Washington. This has reopened the door to considering alternative aircraft, including European-made options. One leading candidate is Sweden’s Saab JAS-39E Gripen, which was the runner-up in Canada’s original procurement competition.
