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Why is Canada so expensive to fly?

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, flying within Canada remains notoriously expensive due to a combination of high federal taxes, airport rent, and a lack of competition. Unlike many other countries where the government subsidizes airport infrastructure, the Canadian government treats its major airports as "cash cows," charging them massive annual rents that are passed directly to passengers through Airport Improvement Fees (AIF). Additionally, the Air Travellers Security Charge (ATSC) and high fuel taxes significantly inflate the base fare. Geographically, Canada's vast size and relatively small, dispersed population make it difficult for airlines to achieve the "economies of scale" found in Europe or the US. Furthermore, the Canadian market is dominated by two major players, Air Canada and WestJet, and while low-cost carriers like Flair exist, they struggle against high landing fees and regulatory hurdles. This lack of a "low-cost revolution" means that a flight from Toronto to Vancouver can often cost more than a flight from Toronto to London or Paris.

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