Inuktitut version (PDF):
June 19, 2025- GATINEAU (Québec), Competition Bureau
The cost of flying is a major concern for Canadians. For many, particularly those in northern and remote communities, air travel is not a luxury - it is a necessity.
Today, the Competition Bureau published its market study report - Cleared for take-off: Elevating airline competition - which makes recommendations to governments for increasing competition in Canada's domestic airline industry.
The Bureau's study found that despite the recent entry and expansion of new airlines, the domestic market remains highly concentrated and competition from new sources remains fragile. At major airports across the country, Air Canada and WestJet together account for roughly half to three quarters of all domestic passenger traffic.
The Bureau's report outlines three areas of focus for governments to create the right conditions for competition in the industry. These are:
Prioritizing competition in Canada's aviation policy, including in the review of airline mergers and collaborations.
Leveraging international capital and experience to strengthen domestic competition, including reducing barriers to foreign ownership.
Supporting northern and remote market access, including tailoring regulations to the northern context.
More competition in the airline industry would mean lower prices, more options and better service for Canadians. The Bureau found that when just one new competitor flies on a route between two cities, airfares go down by 9% on average, highlighting the benefits that competition can deliver
