Travellers are paying more to fly within Canada: study

Travellers are paying more to fly within Canada during peak times compared to last year, according to a new data from Flight Centre Travel Group.

Prices for domestic flights in July through September rose 14 per cent on average over the past 12 months, the company says.

Speaking to the Canadian Press, Chris Lynes, managing director of Flight Centre’s operations in Canada, said the company is seeing prices increases across the board.

Lynes believes plateauing seat capacity and fewer competitors is leading to a rise in fares – especially on short-haul flights in Canada.

Fares on one-way flights from Calgary to Vancouver rose 27 per cent to $580, the company says. Montreal-to-Toronto routes saw a 36 per cent price increase to $781. While tickets for an Edmonton-to-Vancouver trip rose 82 per cent, to $737.

“The seat capacity has either stayed the same or reduced. So when you have the excess capacity and the lack of seats, you’re always going to see the prices increase,” Lynes told CP.

The Canadian aviation industry has faced both consolidation and challenges over the past 13 months with the folding of low-cost carriers Swoop and Lynx Air, as well as airplane delivery delays at Boeing. WestJet also purchased Sunwing, eliminating competition on popular sun routes. 

All of this has prompted Canada’s Competition Bureau to study the state of the airline industry.

“The study will examine how to make it easier for new businesses to compete and easier for consumers to make informed choices,” the agency said in a press release last month.

The action also comes as Canadians have filed more complaints about air travel services in recent years, and as new airlines appear to face challenges entering the market, the Bureau said.

Lynes said fare increases were “inevitable” following the shuttering of Lynx and consolidation of WestJet with Sunwing

Porter Airlines, meanwhile, is shaking up the competition as it continues to expand its North American routes and fleet of Embraer E195-E2s.

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