Economic conditions for Canadian airlines have been nearly perfect over the past 18 to 24 months. Low oil prices and a favourable currency situation have pushed demand to record levels and the industry’s financial performance has taken off as a result.
The low value of the loonie makes travel to Canada relatively cheaper. Despite the generally weak economic conditions in North America last year, Canadian airlines experienced the strongest demand on record in 2016. The possibility of added competition in the Canadian air travel market will keep downward pressure on air fares in the near term.
Downward pressure on the industry’s profit margin will be most apparent starting late in 2017 and carrying through 2018. Nevertheless, the industry’s outlook has rarely been as bright.
In this webinar, Todd Crawford discusses the golden age for air transportation, including: production, price, investment, employment revenues, labour and material costs, profits and profit margins.