Federal transport minister defends Canada's high airfares | Daily Hive

Federal transport minister defends Canada's high airfares, blaming structural challenges

December 2022 snowstorm at Vancouver International Airport (YVR). (Margarita Young/Shutterstock)

Federal Minister of Transport and Government House Leader Steven MacKinnon says Canadians should not expect domestic air travel to become significantly cheaper, arguing that geography, weather, and market realities make flying within Canada an inherently expensive proposition.

Speaking last week during a session with the Greater Vancouver Board of Trade, MacKinnon acknowledged long-standing public frustration over high airfare prices, particularly for travel between smaller and remote communities.

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Sentiment has risen to the point where many Canadians feel that, in addition to rising base fares, they are being nickel-and-dimed for what were once standard, complimentary inclusions — effectively paying more while receiving less. This also comes at a time of stagnating wage growth and economic uncertainty in Canada.

For instance, WestJet began charging for carry-on baggage on its most basic economy fares for domestic and U.S. transborder flights in 2024, with Air Canada following suit in early 2025. Then, in September 2025, WestJet took the trend a step further by beginning the process of “upgrading” select aircraft with reconfigured basic economy cabins featuring fixed seats that do not recline, alongside denser seating layouts intended to accommodate more passengers. Just before Christmas 2025, WestJet announced it would pause this seat conversion process in response to significant consumer backlash.

Against that backdrop of rising costs, pared-back amenities, and reliability and customer-service dissatisfaction, MacKinnon framed the current state of air travel as the product of structural realities rather than airline opportunism, arguing that many of the pressures driving higher fares and service changes are rooted in factors beyond the industry’s immediate control.

MacKinnon said Canada’s geographic size — the second largest country in the world in terms of land area — and climate present structural challenges that are difficult to overcome.

“I don’t want to sound like I’m making excuses, but we have a very big country, and it’s a Nordic country, and it’s tough to provide air services in Canada,” said MacKinnon.

While some critics argue that allowing more foreign airlines into the Canadian market would increase competition and lower fares, he said most international carriers are only interested in serving major hubs such as Vancouver International Airport and Toronto Pearson International Airport.

“So if you’re in Kelowna, or Bathurst, New Brunswick, or Wabush, Labrador, it’s not always entirely economical to service those communities,” he said.

MacKinnon pointed to Air Canada and WestJet as key players that continue to serve smaller markets, alongside what he described as “smaller, nimble, agile” regional carriers that help connect remote areas. Still, he cautioned that the economics of operating in Canada mean higher costs for airlines and, ultimately, passengers.

“It’s going to be expensive to travel by air in Canada, unfortunately, because of natural factors,” he said. “And we need to have strong [national] airlines.”

Steven MacKinnon. (Greater Vancouver Board of Trade)

The minister emphasized the importance of maintaining a strong flag carrier, Air Canada, alongside competition from airlines such as WestJet and the growing presence of Porter Airlines, which he praised for its recent expansion.

“These are all good things,” said MacKinnon, referring to the mix of established and emerging carriers. “But they have high-cost structures, and we need to support them as much as we can.”

MacKinnon acknowledged the perception — and reality — that it is often cheaper to fly internationally than domestically. He cited examples such as lower fares from Vancouver to Los Angeles compared with flights to more remote Canadian destinations.

“Yes, it is. But there are economies of scale,” he said. “There are all sorts of reasons that any business person would understand that make that the case.”

He also pointed to weather conditions, noting that destinations like Los Angeles offer more predictable flying conditions than northern cities such as Yellowknife.

Despite the challenges, MacKinnon said Canada is served by “very good carriers” that provide mostly reliable service to communities that are vital to the country’s economic and social fabric. While the federal government will continue efforts to manage costs and keep fares as affordable as possible, he said Canadians should be realistic about the limits imposed by geography and market forces.

“I do think it’s important that folks hear from a transport minister that there are natural factors that make air travel in Canada an expensive proposition,” he said.

IATA data on global air travel costs also show that several Nordic countries — such as Finland, Denmark, and The Netherlands — rank among markets with some of the highest average airfares, alongside Canada and other high-cost regions

Beyond geography and climate, Canada’s airlines face higher structural costs that add pressure to fares and operations, including both fuel costs and labour costs — driven by the pandemic’s inflationary impacts on the cost of living.

In 2025, Air Canada’s flight attendant strike — one of the largest in recent memory, involving more than 10,000 workers — disrupted flights nationwide and prompted the airline to revise its 2025 financial outlook after absorbing hundreds of millions of dollars in lost revenue and added labour costs, even as lower fuel prices partially offset some expenses.

Meanwhile, WestJet has dealt with its own labour tensions in recent years, including mechanics’ job actions in 2024, underscoring the bargaining power and cost pressures associated with airline workforces.

Looking ahead to 2026, multiple Canadian carriers — including Air Canada, WestJet and Porter Airlines — are entering critical contract negotiations with various employee unions, raising industry forecasts that labour negotiations could again pose operational risks and potential disruptions if deals are not reached.

Earlier in 2025, public policy think tank MEI released a report blaming taxes and fee structures for adding a layer of extra costs to airfares.

According to MEI, federal government policy and fee structures are significant contributors to high airfares, noting that a substantial portion of the cost of a domestic ticket comes from taxes, security charges, and airport fees rather than airline operating expenses. Unlike in the United States, Canadian airports operate almost entirely on a user-pay model, relying on fees charged to airlines and passengers — including federally imposed airport rent — to fund infrastructure, costs that are ultimately passed on to travellers.

The think tank also asserts Canada’s air travel fees and charges are often higher than those in comparable jurisdictions, undercutting the argument that weather and distance are the primary cost drivers. While Canada’s size and climate do create operational challenges, policy choices around airport funding, taxation and competition have compounded costs, making it cheaper in many cases to fly internationally than between Canadian cities. For these reasons, they suggest that it is within the federal government’s ability to cut the cost of flying in Canada.

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