This report examines the short-and medium-term economic and profitability outlook for Canada’s Air Transportation Industry.
Canada’s Air Transportation Industry: Industrial Outlook Summer 2015
Canada’s Air Transportation Industry: Industrial Outlook Summer 2015
Industry Economic Analysis
$910.00
- Lower Dollar—The lower dollar is reducing the incentive for Canadians to drive across the border and fly out of U.S. airports, and it is encouraging more international travellers to visit Canada.
- Profits—The impact of the plunge in oil prices is expected to be temporary. But coupled with surging demand for the industry’s services, it is pushing the industry’s pre-tax profit margin to record levels.
- Prices—Strong capacity growth and intensifying competition are leading airlines to pass on part of their savings from lower aircraft fuel costs to consumers through lower airfares. This is weighing on the industry’s revenue growth.
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