Canada is not known for its cheap flights (or cheap cellular service or banking fees for that matter). Some travel and airline booking websites have ranked countries around the world on the affordability of their domestic and international flights and, not surprisingly, Canada does not do well.
Surprise, surprise…it’s expensive here!
In Kiwi.com’s annual report in 2017, summarized on Finder, Canada had the fourth highest fares for full service international flights in the world after the UAE, the Netherlands, and Bolivia. That same study ranked Canada’s overall fare affordability 65th out of the 80 countries they examined. The United States was 30th at less than half of Canada’s average cost, and at least sixteen other countries, including Sweden, South Africa, Japan, Spain, Poland, and Kazakhstan had average flight costs that were at least three times cheaper than Canada’s.
Canada ranked 65th out of 80 countries in airline fare affordability
Why so expensive? Competition, of course, or the lack of competition as is the case in Canada.
No competition
The two major Canadian airlines, WestJet and AirCanada, control roughly 80% of the domestic seats sold in our country. Two airlines controlling 80% of the domestic market is, unfortunately, yet another example of an oligopoly in Canada and any oligopoly (which is really just a monopoly with two or more players) is inherently uncompetitive.
WestJet and AirCanada control about 80% of the seats in Canada
As we say again and again on this site, increased competition is the main cure for these high prices. Since the airlines don’t want more competition, we need to insist that our government forces that competition to the benefit of Canadian travellers.