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, Winter 2011
Canada’s Air Transportation Industry: Industrial Outlook, Winter 2011
Industry Economic Analysis
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- Cost Control—Most of the industry’s key players recorded strong profits in 2010, thanks to cost-control strategies initiated during the recession.
- Exchange Rate—The strong Canadian dollar has reduced airlines’ effective costs, as a large share of inputs are priced in U.S. dollars.
- Oil Prices—Oil prices have surged in the last six months and are expected to keep increasing in the coming years. Air transporters may be forced to pass these higher costs on to customers.
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