Canadians paying more for airfares as summer ticket prices jump
A new report says travellers are paying significantly more to fly within Canada during peak tourism season compared with last year, as limited capacity and competition outweigh softening demand to push up airfares. Prices for domestic flights from July through September stand 14% higher on average than they did 12 months ago, according to figures from the Flight Centre Travel Group. "We're seeing definite increases in cost across the board," said Chris Lynes, managing director of the Australia-based travel agency's operation in Canada. As the pent-up demand for leisure travel that followed the COVID-19 pandemic began to wane, slight price drops were anticipated, he said. But plateauing seat capacity and less competition conspired to boost fares, a trend especially noticeable on short-haul flights. One-way flights from Calgary to Vancouver climbed 27% to $580 on average, according to Flight Centre. Montreal-to-Toronto routes saw a 36% price increase to $781. Tickets for an Edmonton-to-Vancouver trip surged 82% to $737. "The seat capacity has either stayed the same or reduced. So when you have the excess (demand) and the lack of seats, you're always going to see the prices increase," Lynes said. Several Canadian airlines have run into plane delivery delays caused by production problems at aircraft maker Boeing Co., which has constricted their ability to grow their fleets. WestJet's CEO said last month the airline is on the hunt for aircraft to offset postponed Boeing deliveries after a door plug blowout on a 737 Max jet flown by Alaska Airlines in January prompted U.S. regulators to halt a production expansion.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2024-06-18/general/canadians-paying-more-for-airfares-as-summer-ticket-prices-jump
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Canadians paying more for airfares as summer ticket prices jump
A new report says travellers are paying significantly more to fly within Canada during peak tourism season compared with last year, as limited capacity and competition outweigh softening demand to push up airfares. Prices for domestic flights from July through September stand 14% higher on average than they did 12 months ago, according to figures from the Flight Centre Travel Group. "We're seeing definite increases in cost across the board," said Chris Lynes, managing director of the Australia-based travel agency's operation in Canada. As the pent-up demand for leisure travel that followed the COVID-19 pandemic began to wane, slight price drops were anticipated, he said. But plateauing seat capacity and less competition conspired to boost fares, a trend especially noticeable on short-haul flights. One-way flights from Calgary to Vancouver climbed 27% to $580 on average, according to Flight Centre. Montreal-to-Toronto routes saw a 36% price increase to $781. Tickets for an Edmonton-to-Vancouver trip surged 82% to $737. "The seat capacity has either stayed the same or reduced. So when you have the excess (demand) and the lack of seats, you're always going to see the prices increase," Lynes said. Several Canadian airlines have run into plane delivery delays caused by production problems at aircraft maker Boeing Co., which has constricted their ability to grow their fleets. WestJet's CEO said last month the airline is on the hunt for aircraft to offset postponed Boeing deliveries after a door plug blowout on a 737 Max jet flown by Alaska Airlines in January prompted U.S. regulators to halt a production expansion.<br/>
