This report examines the short-and medium-term economic and profitability outlook for Canada’s Air Transportation Industry.
Canada’s Air Transportation Industry: Industrial Outlook Summer 2016
Canada’s Air Transportation Industry: Industrial Outlook Summer 2016
Industry Economic Analysis
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- Tourism—U.S. citizens are flying to Canada in record numbers as the relatively low value of the loonie makes Canada a more cost-friendly destination.
- Jet Fuel Price—Although the drop in the Canadian dollar offsets some of the benefit of falling jet fuel prices, the industry’s cost savings have been substantial.
- Demand—Rising incomes in emerging markets are driving up demand for luxury services such as tourism and air travel. This will be a sustained source of growth for Canadian airlines going forward as they continue to expand capacity to these markets.
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