A study conducted by the Montreal Economic Institute has concluded that the high cost of domestic air travel is largely due to the various fees the federal government imposes on airlines and airports.
The independent public policy think tank studied three main factors that drive up ticket prices: airport rents, security fees, and fuel tax. Over the last 10 years, rent paid by large Canadian airlines has gone up 42.5%, said the study; with rent for the 2022-2023 fiscal year surpassing the pre-pandemic peak at $419 billion (US$308bn).
As of 1 May 2024, the air traveller security charge is also set to increase $9.94 (US$9.94)for a domestic flight and to $34.42 (US$35.35) for an international flight. In comparison, United States fees do not exceed $15.30 (US$11.27), where fuel tax is also substantially cheaper.
“When you add up all of these fees charged by the federal government, you quickly realise that a substantial portion of the price of a plane ticket is taxes,” explained Gabriel Giguère, public policy analyst and author of the study.