Air fares, fourth quarter 2016
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Released: 2017-06-28
$220.70
Fourth quarter 2016
-5.0% 
(year-over-year change)
Base air fares in Canada, domestic and international combined, averaged $220.70 in the fourth quarter, down 5.0% from the same quarter in 2015 and continuing a downward trend that began in the second quarter of 2015.
Chart 1
Average domestic and international air fares
The average domestic fare was down 6.1% from the same quarter a year earlier to $163.80, while the average international fare fell 6.9% to $282.60.
Average domestic fares declined in all selected Canadian cities of enplanement. Decreases ranged from 1.5% in Regina to 8.2% in Montréal.
After being edged out by Vancouver in the previous quarter, Toronto ($189.50) once again recorded the highest average domestic air fare among the major cities in the fourth quarter. These two cities, as well as Winnipeg ($178.20), were the only ones to record average domestic fares above the national average. Meanwhile, Saskatoon ($147.50) posted the lowest average domestic air fare for a ninth consecutive quarter.
Chart 2
Average domestic air fares for 10 major Canadian cities
In celebration of the country's 150th birthday, Statistics Canada is presenting snapshots from our rich statistical history.
On September 1, 1937, Canada's first national airline, Trans-Canada Air Lines, kicked off its passenger operations. Using its new Lockheed Electra aircraft and carrying two passengers, it flew its first regular service on a route between Vancouver and Boeing Field, Seattle, in 50 minutes. The air fare was $7.90 one way and $14.20 return.
The following year, regulation was introduced in an effort to protect the airlines. This regulatory oversight of fares continued essentially unchanged until 1984, when Canada began taking steps to open the air travel market to competition, culminating in the 1987 National Transportation Act.
After accounting for general price increases or inflation, the desired effect of these regulatory reforms appeared to be minimal at first, with air fares increasing slightly until 2000.
Since then, average base fares have fallen steadily, due not only to increased competition, but also to the unbundling of ticket prices into a lower base fare and supplementary charges (airport improvement fees, meals, checked bags), and more recently due to lower prices for jet fuel.
Note to readers
Average air fares are base fares and do not include the goods and services tax, air transportation taxes or user fees, such as airport improvement fees or fuel surcharges.
Average air fares are calculated for each flight stage. When the passenger boards the aircraft at one airport and departs the aircraft at another airport, this is considered a flight stage.
The Fare Basis Survey covers Air Canada (including Air Canada Rouge), Jazz, Air Canada's Canadian regional code-share partners, Air Transat and WestJet.
The data in this quarterly release are not seasonally adjusted.
Data for the second and third quarters of 2016 have been revised.
The Fare Basis Survey is being redesigned.
Products
Summary tables are also available.
Contact information
For more information, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).
For more information on the current definitions, data sources and methods of the Fare Basis Survey, click on the Related information tab of this release. Readers who wish to know more or consult with Statistics Canada about the redesign of this survey can also contact (statcan.transportationstats-statistiquesdutransport.statcan@canada.ca).
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