A new report says travelers will pay significantly more for flights within Canada this summer than last year.
Flight Centre Travel Group says domestic ticket prices for July to September have increased by an average of 14% over the past 12 months.
Chris Lynes, who heads the Australian-based travel agency’s Canadian operations, says plateauing seat capacity and less competition partly explain this trend, which is particularly visible on short-haul flights.
Several Canadian airlines have experienced aircraft delivery delays caused by production problems at aircraft manufacturer Boeing, limiting their ability to expand their fleet.
Meanwhile, the past 13 months have seen further industry consolidation, as low-cost carriers Lynx Air and Swoop disappeared from the skies and WestJet bought Sunwing Airlines — developments that helped prompt a Competition Bureau review last month.
However, Porter Airlines is adding two planes a month, part of a rapid expansion plan that injects a dose of competition into the market.