Value of airfare, journey down for the 14th consecutive month

The value of journey dropped once more final month, in response to Statistics Canada consumer price index (CPI) knowledge for August.

Air fares have been down by 7.6 per cent in comparison with August final yr. This is the 14th straight month that air transportation costs decreased year-over-year, although they dropped to a lesser extent than within the three months prior, together with a ten.6 per cent lower in July.

The final time air fares in Canada had a year-over-year enhance was in June 2024, in response to CPI historic knowledge.

On a month-over-month foundation, fares have been down 5.9 per cent in August in comparison with July, whereas final yr’s sequential decline for a similar time interval was 8.9 per cent.

Travel excursions pushed down the price of journey providers for August, stated StatCan. Prices for journey providers decreased by 3.8 per cent year-over-year, after falling 1.2 per cent in July, whereas the price of journey excursions dropped 9.3 per cent yearly, following a 1.7 per cent lower in July, it stated.

Statistics Canada stated decrease demand for locations within the United States contributed to the decrease costs.

Meanwhile, costs for traveller lodging have been larger in August, moderating the downward strain for the journey class, it stated.

As extra Canadians select to journey inside their very own nation, demand for domestic stays have gone up.

StatCan stated journey lodging costs rose nationally by 2.9 per cent in August, following a 2.7 per cent decline in July.

It stated costs for accommodations elevated essentially the most, by 30.9 per cent, in Newfoundland and Labrador, the place the Canada Summer Games have been hosted in August. Nova Scotia additionally had the best surge in resort costs in August with a 16.1 per cent enhance.

In a observe to shoppers, National Bank airline inventory analyst Cameron Doerksen stated airfares in Canada proceed to be comparatively weak, declining for 14 months straight.

He famous that Air Transat, which reported its fiscal third-quarter outcomes on Thursday, indicated that, to date, yields have been 3.1 per cent larger yr over yr in fiscal This fall, though trending downward.

Doerksen stated the downward pattern could be partly attributed to a moderation in yields following the Air Canada strike in August, from which Transat and different Canadian carriers benefited considerably.

Doerksen stated he suspects that Air Canada is being aggressive with pricing because it seeks to win again prospects following the flight cancellations.

“While this will likely pressure overall industry yields in the short term, we consider this to be temporary and would expect a normalization in yields later in calendar Q4,” he wrote.