After entertaining new entrants for several years, Canada’s airline market is once again tracking toward consolidation, raising the likelihood of higher fares and fewer flight options.
Since May, newer low-cost carriers Swoop and Lynx Air have disappeared from the skies and WestJet has scooped up Sunwing Airlines.
The latter two alone make up 37 per cent of seat capacity on direct flights to sun destinations, and 72 per cent from Western Canada, according to a report from the Competition Bureau last fall.
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.
University of Manitoba transport institute director Barry Prentice says high airport rents, security fees and fuel taxes raise the baseline cost of flying, making it harder for discount airlines to coax budget-conscious Canadians on board.
Air Canada and WestJet command 79 per cent of domestic traffic as of this month versus 74 per cent a year earlier, statistics from aviation data firm Cirium show.
This report by The Canadian Press was first published March 13, 2024.
