StatCan: Airfare rises year-over-year – soar above pre-pandemic levels

Statistics Canada says airfares rose two per cent year-over-year in June, and continued to soar above pre-pandemic levels.

 

Figures from the consumer price index show the increase follows a 4.5 per cent year-over-year bump in May and a fairly flat April.

 

Prices also stood nearly 19 per cent above what travellers paid for their plane tickets in June 2019.

 

The pricier fares stem partly from limited competition and flight capacity among airlines, which more than offset softening demand since the post-pandemic travel boom.

National Bank analyst Cameron Doerksen says fares have risen for most of the year — including on key domestic routes — following an 11-month stretch of year-over-year declines, mainly in 2023.

 

However, he says WestJet may need to lower its prices in the short term to lure back customers after a two-day mechanics strike that prompted more than 1,300 flight cancellations and upended plans for at least 170,000 travellers.

 

 

 

This article was first reported by The Canadian Press