The Canadian Press: Canadian airline market on path to consolidation, raising risk of higher fares
March 14, 2024 —
Some experts warn that the shrinking airline tally could mean less service and higher prices, particularly in the West and smaller markets across the country.
High airport rents, security fees and fuel taxes raise the baseline cost of flying, making it harder for budget airlines to coax budget-conscious Canadians on board.
“The high fees certainly make it more challenging for the discount carriers,” said University of Manitoba transport institute director Barry Prentice.
The market’s decades-long domination by Air Canada and WestJet can also stifle competition, some industry players argue.