Canadian Industrial Outlook: Air Transportation—Summer 2018

The Conference Board of Canada, 16 pages, August 22, 2018
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This report examines the short-and medium-term economic and profitability outlook for Canada’s air transportation industry.

Document Highlights

Industry Growth—Canadian air transportation has reached new heights in recent years, with industry GDP expanding nearly six times faster than the Canadian economy in aggregate between 2014 and 2017.

Record Financial Performance—With revenues surging thanks to strong demand and fuel expenses shrinking due to low oil prices, margins over the last three years have exceeded any other consecutive three-year period on record.

Soft Landing Coming—The torrid pace enjoyed by the industry in recent history will not last. International demand will slow as the loonie appreciates and the domestic market is mired in a slow-growth cycle compounded by severe risks posed by the fate of U.S.-Canada trade relations.

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