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Why are airlines in Canada so expensive?

The National Airlines Council of Canada (NACC) confirmed these details saying the costs of services that airlines absorb, including airport rent, air travellers security charge, NAV Canada fees and federal taxes all play a role in why costs so high.



In 2026, airfare in Canada remains significantly higher than in the US or Europe due to a combination of low competition, high taxes, and a "user-pay" airport model. Canada is the second-largest country in the world but has a relatively small population, meaning airlines have massive "per-passenger" operational costs to cover vast distances. Unlike the US, where airports often receive federal subsidies, Canadian airports are private, non-profit entities that pay "ground rent" to the federal government; these costs are passed directly to travelers through Airport Improvement Fees (AIF), which can add $25 to $50 to every ticket. Furthermore, fuel taxes and security charges are among the highest in the world. While new budget carriers like Porter have increased competition in 2025 and 2026, the "Air Canada-WestJet duopoly" still controls much of the market. This structural "high-cost" environment makes it often cheaper for a Canadian to fly to London or Mexico than it is to fly across their own country.

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Budget Travel vs Luxury Travel Budget travelers to Canada should plan on spending up to $100 per day, which includes a night's stay at a campsite, hostel, dorm or budget hotel, food from supermarkets or fast food restaurants, public transportation and limited attractions.

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Budget travelers to Canada should plan on spending up to $100 per day, which includes a night's stay at a campsite, hostel, dorm or budget hotel, food from supermarkets or fast food restaurants, public transportation and limited attractions.

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Flights are generally the most inexpensive between four months and three weeks before your departure date. Seasonal changes and holidays can create price fluctuations in ticket prices. The day of the week that you book a flight does not affect the price.

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Expedia's report also notes travelers can look forward to a 3 percent decrease in booking airfare in 2024, compared to the higher prices of 2022.

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1) United Kingdom. The United Kingdom (England, Scotland, Wales, and Northern Ireland), has the highest taxes of the fifteen countries. For Americans, this is unfortunate since over 25,000 flights went through just London-Heathrow in 2014. Overall, nearly 3 million Americans visited across the pond last year.

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