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.