Soaring cost of air travel not keeping passengers grounded

The price of your next flight will likely cost you more.

According to the International Air Transport Association (IATA), the cost of a plane ticket is expected to keep soaring due to a number of factors, including inflation, jet fuel costs, and pressure to decarbonize.

“Ultimately, consumers are going to pay the additional costs that are being faced by the industry,” said IATA Director General Willie Walsh, during the association’s meeting in Dubai.

“With margins of three per cent, there’s no way the industry can absorb the additional, or potential additional, costs that we’ll face.”

Air Passenger Rights president Gabor Lukacs doesn’t agree.

“The airlines are trying to increase their profit margins by softening up the travelling public to accept a higher price,” said Lukacs.

He notes Canada’s airline industry is different, and often pricier, than many other countries.

“Insufficient competition and protectionism of the domestic market is also a serious problem,” he said.

“I would anticipate, if Canada opened up its domestic markets for trustworthy foreign airlines, then it would make a difference and it would lower prices on those routes.”

Travellers are noticing the higher prices and are making efforts to find a deal.

“Flair seemed to have cost-effective packages, and it was a last-minute booking,” said Louise Kazarian-Hodder, who is visiting Halifax from Owen Sound, Ont.

Kazarian-Hodder doesn’t plan to stop travelling, however she is changing how – and where – she travels.

“We normally go to the tropics, but now we’ve decided to travel within Canada, find cost-effective means, and that’s probably what we’re going to do in the future, too.”

The high costs don’t seem to be keeping people grounded. In fact, passenger traffic was up in 2023.

The Halifax Stanfield International Airport saw 3,579,293 travellers, which is a 15 per cent increase over 2022. The airport is projecting to welcome four million passengers in 2024, and is expecting a return to pre-pandemic levels in 2025.

The Charlottetown Airport saw a record-high 402,686 passengers in 2023 — an increase of 18 per cent.

Traffic at the Fredericton International Airport was up 25 per cent, with 333,813 passengers in 2023.

For more Nova Scotia news visit our dedicated provincial page.