Passengers aren91裸聊视频檛 the only ones feeling cramped these days.
Though Canadian flights have long been dominated by Air Canada and WestJet, the emergence of newer carriers including Flair Airlines and Lynx Air has shaken up the sector, injecting fresh competition to a once-complacent market.
Most airlines are setting plans in motion to ramp up growth over the next year, adding more planes to an already crowded field 91裸聊视频� and cheaper fares on the busiest routes.
91裸聊视频淲henever you91裸聊视频檝e got players trying to establish themselves in these markets, it is a boon for consumers,91裸聊视频� said former Air Canada chief operating officer Duncan Dee.
Key domestic arteries such as Toronto-Vancouver, Vancouver-Calgary and Montreal-Toronto host more airlines than ever 91裸聊视频� up to six now versus as few as two several years ago 91裸聊视频� with fares dragged down by a pair of budget carriers.
The cost of a domestic round-trip plane ticket fell to $289 on average this fall, a drop of 24 per cent from 2019 levels and 11 per cent from a year ago, according to travel booking app Hopper Inc.
The hub-to-hub rivalries within Canada come ahead of a battle over routes running from big cities to sun destinations this winter.
More than three-quarters of the trips by ultra-low-cost Flair this winter will be to the U.S. Sun Belt, Mexico and the Caribbean compared with 40 per cent last winter, CEO Stephen Jones said in an interview last month. It plans to grow its fleet by nearly a quarter to 26 planes next year.
Lynx, a no-frills airline that launched its maiden voyage in April 2022, aims to expand to 17 aircraft from nine at the moment. Its newest route flies between Toronto and Los Angeles for as low as $129 one way, tax included. The cheapest Air Canada ticket on the same route and dates was $490.
91裸聊视频淲e91裸聊视频檙e really investing strongly in this market, because it91裸聊视频檚 underserved by low-cost carriers,91裸聊视频� Lynx CEO Merren McArthur said of sun destinations 91裸聊视频� particularly flights out of Toronto91裸聊视频檚 Pearson airport.
Meanwhile, Porter Airlines has bought 50 132-seat Embraer E195s, hoping to grow its fleet to 79 by 2025 from 46 currently.
91裸聊视频淭hey will not shy away from a gun fight,91裸聊视频� John Gradek, who teaches aviation management at McGill University, said of Porter.
The 17-year-old carrier joined the five other airlines plying the skies between Toronto and Vancouver in February. It also plans to launch service between Toronto and Orlando, Fla., in November, going up against an equal number of rivals.
91裸聊视频淚91裸聊视频檇 say it91裸聊视频檚 a highly competitive market,91裸聊视频� said chief executive Michael Deluce, who also expressed doubt about how long the system can hold.
91裸聊视频淚 think the current set of competitors is not a sustainable long-term proposition. I91裸聊视频檓 not going to highlight which carriers I think will not be here 12 or 24 months from now,91裸聊视频� he added.
Meanwhile, Air Canada aims to operate eight per cent more flights to sun-splashed spots this winter than in 2019. WestJet plans to hit 15 per cent more capacity overall next year than last.
More competition amounts to lower fares, particularly if demand drops off at a time when consumer spending is slowing.
91裸聊视频淭he Canadian market this fall on travel, you91裸聊视频檒l get a hell of a deal,91裸聊视频� Gradek said.
Outside of Mexico and the Caribbean, supply for international trips still falls short of demand, pushing fares ever higher.
The price of round-trip flights this fall rose 22 per cent for Europe, 16 per cent for South America and 32 per cent for Africa and the Middle East compared to 2019, according to Hopper.
It shot up 45 per cent for Australia and a whopping 121 per cent for Asia, with flights between China and Canada numbering 10 per week versus 100 per week in 2019, according to Transport Canada.
The plunge is due largely to China91裸聊视频檚 tight restrictions on tour group visits to Canada and a Russian airspace ban that forces Canadian carriers to take a longer route to Asia, tacking significant fuel and labour costs on to diplomatic tensions.
Back in Canada, regional fares are also on the rise apart from the biggest routes as the two dominant players retrench around their old hubs.
Over the past year, Calgary-based WestJet cut routes in Ontario, Quebec and Atlantic Canada to refocus on the West. It has also cut flights on some more heavily travelled corridors, including roughly 80 per cent of its trips between Toronto and Montreal compared to 2019 levels, according to aviation data firm Cirium.
Montreal-based Air Canada has mirrored this move, remaining in Central and Eastern Canada while scaling back in the West 91裸聊视频� it axed six long-haul routes out of Calgary last month. It also scrapped 26 regional routes east of Winnipeg in June 2020, with only a handful resuming since.
91裸聊视频淏ottom line: play where you can win,91裸聊视频� said Robert Kokonis, president of consulting firm AirTrav Inc.
That lack of regional competition 91裸聊视频� though budget airlines have filled a handful of those gaps 91裸聊视频� means pricier fares on most smaller domestic routes, according to an analysis of Cirium data earlier this year.
A tight labour market is limiting growth.
91裸聊视频淣o. 1 would have to be the pilot resourcing. Everybody91裸聊视频檚 ramping up very quickly and everyone91裸聊视频檚 competing for the same pool of pilot candidates,91裸聊视频� said Lynx91裸聊视频檚 Merren McArthur.
In a memo viewed by The Canadian Press, Air Canada executive vice-president Mark Galardo told staff last month that 91裸聊视频渁n industry-wide shortage of pilots 91裸聊视频� has had a prolonged impact on our regional network,91裸聊视频� with ripple effects on mainline operations.
He also cited a need to 91裸聊视频渄efend our position against increased competition from new entrants, existing competitors making strategic moves and, in some cases, even other flag carriers91裸聊视频� at Air Canada91裸聊视频檚 three hubs of Toronto, Montreal and Vancouver.
Meanwhile, jet fuel prices are climbing back up to six-month highs, 91裸聊视频渋mplying this cost may pressure margins,91裸聊视频� said TD Cowen analyst Helane Becker 91裸聊视频� all as pilot unions demand, or already secured, higher wages at Air Canada and WestJet, respectively.
Ultimately, Canadians91裸聊视频� urge to travel remains the key driver, one resting heavily on economic concerns as more and more of consumers91裸聊视频� cash goes to service their debt. Whether planes stay full in the next 12 months remains to be seen.
91裸聊视频淚 think it91裸聊视频檚 an open question whether we91裸聊视频檒l be able to see the same amount of pent-up demand that we91裸聊视频檝e seen over the last year,91裸聊视频� Dee said.
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