Jewish right's groups across the country have been calling for action from the COGECO Diffusion-owned station, 98.5 FM.
In a statement released today, senior vice president Richard Lachance said Fabi regrets the incident.
"COGECO Diffusion and 98.5 FM do not endorse in any way these comments and deplore, without reservation, the on-air host's lack of judgment in this case," said Lachance.
A woman, who called herself Maria, phoned into Fabi's show last week.
He allowed her to continue speaking after she called the Holocaust a beautiful thing.
Fabi did not interrupt the woman, but continued the conversation and sympathized with her statements.
"I'd never dare say such a thing," he said, adding, "though you probably have the right."
Fabi said that there are consequences for people who speak negatively about Jewish people, especially in Montreal where there is such a significant Jewish population.
"If you asked me if the Jewish population can sometimes be annoying, I would say yes," he said.
In total, the conversation lasted for more than four minutes.
B'nai Brith Canada is demanding an on-air apology from Fabi.
The organization sent a formal letter to the radio station complaining about the comments. B'nai Brith also sent complaints to the CRTC and the Canadian Broadcast Standards Council.