Loading Page...

Why is flying in Canada so expensive?

“Canada is one of the most expensive places to operate an airline. Fees, taxes and charges for airports, air traffic control, security and other shared services are among the highest of any country.



Flying within Canada is notoriously expensive due to a combination of high government-imposed fees, a sparse population, and a lack of competition. Unlike the U.S., where airports receive significant federal funding, major Canadian airports are operated by private, non-profit authorities that must pay "ground rent" to the federal government. To cover these costs and fund infrastructure, airports charge passengers high Airport Improvement Fees (AIF), which can add $30 to $40 to a single ticket. Additionally, the Air Travellers Security Charge (ATSC) and high fuel taxes further inflate prices. Geographically, Canada's vast size and small population (concentrated in a few hubs) make for "low-density" routes that are expensive to operate. Furthermore, the Canadian market is dominated by a near-duopoly of Air Canada and WestJet; without the intense competition of ultra-low-cost carriers found in Europe or the U.S., fares remain high. High operating costs—driven by de-icing and winter maintenance—also contribute to the premium Canadians pay to move across their own country compared to trans-border or international flights.

People Also Ask

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.

MORE DETAILS