Statistics Canada says airfares have plummetted over the past year, as airlines shore up capacity even while consumers think twice about travel amid a higher cost of living. An Air Canada jet taxis at the airport, in Vancouver, B.C., Wednesday, Nov. 15, 2023. THE CANADIAN PRESS/Adrian Wyld
Statistics Canada says airfares have plummeted over the past year, as airlines shore up capacity even while consumers think twice about travelling in a world of higher costs.
In its consumer price index today, the agency says the price of air transportation dropped 19.4 per cent last month compared with October 2022.
The figure follows a 21 per cent year-over-year drop in September and a 20 per cent decrease in August, after rampant post-pandemic demand last year outstripped carriers’ capacity to meet it, resulting in sky-high fares.
The data also showed airfares declined four per cent on a monthly basis in October, when they typically rise ahead of the holiday season.
The travel sector continued to roar back this year, with seat capacity among big Canadian carriers at 92 per cent of 2019 levels, according to figures from aviation data firm Cirium.
But experts say customers are now curtailing travel plans in response to strained purse strings and nearly two years of high inflation, even as airlines increase flight volumes and try to lure Canadians back on board with lower prices.
This report by The Canadian Press was first published Nov. 21, 2023.
