Airfares fall 14 per cent in January as demand eases and competition ramps up

Statistics Canada says costs for airfares fell greater than 14 per cent in January in contrast with the identical month in 2023.

The company’s shopper value index report says aircraft fares additionally dropped practically 24 per cent between December and January, as vacation demand gave option to final month’s stay-at-home habits.

However, the value of a ticket remained 10 per cent above 2019 ranges, reflecting aviation’s greater prices and barely decrease capability in a post-pandemic world.

January’s year-over-year fare decline follows a development seen since April the place costs have fallen in comparison with the identical months a 12 months earlier, together with a ten per cent fall in December and 17 per cent drop in November.

Duncan Dee, former chief working officer at Air Canada, says the lower displays a drop in demand as a result of monetary pressures customers proceed to really feel from inflation and better rates of interest.

He additionally says competitors stays fierce between Canadian airways, as smaller gamers develop and WestJet and Air Canada battle price range carriers for purchasers on routes to solar locations and North American cities.

This report by The Canadian Press was first revealed Feb. 20, 2024.