Canada's Air Transportation Industry: Industrial Outlook Summer 2012

The Conference Board of Canada, 12 pages, September 2012
Report by Kristelle Audet

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

Economic Uncertainty—The eurozone debt crisis is hurting global economic growth. On top of that, the U.S. will soon have to deal with its “fiscal cliff.” The resulting increase in economic uncertainty will continue to affect consumer and business confidence in the coming months.
Slower Growth in Air Traffic—Air traffic increased considerably in the first quarter of the year. However, the pace of growth slowed in the second quarter, a trend expected to continue in the near term.
Oil Prices—Despite the recent pickup in oil prices, the large price drop we saw between April and June will help to contain overall growth in the industry’s costs this year.

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