This report examines the short-and medium-term economic and profitability outlook for Canada’s air transportation industry.
Canadian Industrial Outlook: Air Transportation—Winter 2018
Canadian Industrial Outlook: Air Transportation—Winter 2018
Industry Economic Analysis
$945.00
Economy—Air carriers have enjoyed nearly perfect economic conditions. However, a gradual easing of supportive factors on the macroeconomic side—low oil prices and a favourable currency situation—will lead to a gentle moderation in demand for air travel by both domestic and foreign passengers.
New Competitors—Enhanced price competition in the ultra-low-cost carrier segment of the Canadian air travel market will sustain downward pressure on air fares over the next year. The larger incumbent firms have already begun to lower prices to deter potential new entrants.
Strong Performance—Although industry output growth will ease from recent highs, it will remain well above the Canadian average over the medium term. Industry margins will soften as oil prices and labour costs rise, but they will remain above their post-recession average and support steady profitability for the industry beyond the medium term.
Customers Who Downloaded This Also Liked
10 min read
10 min read
10 min read
14 min read
Require an accessible version of this research?
Upon request, Signal49 Research offers accessible versions of research. Please contact us to request your accessible version.
Learn more about our accessibility policies.
Effective January 26, 2026, AERIC Inc./Signal49 Research discontinued use of ‘The Conference Board of Canada’ name, logo and branding, which had been used by AERIC Inc./Signal49 Research under license from The Conference Board, Inc. The Conference Board, Inc. and its licensees, which are not affiliated with Signal49 Research, own all right, title and interest in THE CONFERENCE BOARD name and trademarks in Canada and have the exclusive right to their use in Canada since January 26, 2026.
