Canada’s Air Transportation Industry: Industrial Outlook Winter 2017

The Conference Board of Canada, 14 pages, January 26, 2017
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This report examines the short-and medium-term economic and profitability outlook for Canada’s Air Transportation Industry.

Document Highlights

  • Economy—Economic conditions have rarely been as positive for air transportation as they have been in the past two years. 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.
  • Price Competition—The possibility of added competition in the Canadian air travel market will keep downward pressure on air fares in the near term. The larger incumbent firms have already begun to lower prices to combat potential new entrants.
  • Strong Performance—Although the outlook for industry growth moderates over the forecast, it will remain well above average. Industry margins will come down as oil prices rise. However, margins will remain comfortably above their post-recession average, allowing the industry’s aggregate profitability to reach new record levels.

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