Canadian flight prices see steep increase compared to last year

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If you’re planning to take a flight within Canada this summer, you’ll likely be paying more for your airfare.

That’s according to recent booking data from Flight Centre Travel Group, which revealed that flight fares to major Canadian cities have increased on average by 14% compared to last year.

The data shows that across various routes in Canada, there have been several steep increases in airfare despite a decrease in capacity.

For example, the Edmonton to Vancouver flight route saw an 82% rise in fares, with a 13% reduction in capacity.

Another price increase was seen in the Toronto to Calgary route, as fares rose 24% and capacity fell 10%, year over year.

However one of the country’s most popular routes — Vancouver to Toronto — had a slight (1%) drop in fare prices.

Flight Centre Canada

Flight Centre Canada says several factors contributed to the fare increases, including “global supply chain disruptions impacting aircraft deliveries, a slow reintegration of planes previously taken out of service during COVID-19, and technical issues with engines (specific to Pratt & Whitney) reducing [the] number of operational aircraft.”

Canada’s airline industry is also experiencing a lack of competition.

In less than a year, Canada lost two low-cost carriers: Swoop shut down in late 2023, while Lynx ceased operations in early 2024. Air Canada and low-cost carrier WestJet remain the biggest airlines in the country.

This has prompted the country’s Competition Bureau to launch a market study of competition in domestic air travel within the country.

“The airline industry is important to Canadians and the Canadian economy. Since the Canadian population is spread out over vast distances, other modes of transportation may not be feasible replacements for air travel,” said Matthew Boswell, Commissioner of Competition at the Competition Bureau, in a previous statement.

“More competition in the industry will mean lower prices, better services, and improved productivity.”

Thousands of frustrated Canadian travellers have also signed a petition demanding that Prime Minister Justin Trudeau stop the airline monopoly in Canada.

With files from Irish Mae Silvestre

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