Canada’s Air Transportation Industry: Industrial Outlook Winter 2012

This report examines the short-and medium-term economic and profitability outlook for Canada’s Air Transportation Industry.

Document Highlights

• Economic Uncertainty—Consumer and business confidence will be under pressure with the eurozone likely in recession and oil prices expected to remain volatile.
• Domestic Demand—High consumer indebtedness might temper the growth in domestic demand for travel. Airlines will thus have to put extra effort into attracting international tourists.
• Competition—WestJet’s new regional carrier will increase competition in smaller markets—allowing travellers to access a wider range of destinations at potentially cheaper rates.