Airline competition ramps up, setting stage for showdown and reducing (some) fares

Though Canadian flights have long been dominated by Air Canada and WestJet, the emergence of newer carriers including Flair Airlines and Lynx Air has shaken up the sector, injecting fresh competition to a once-complacent market.

Passengers aren't the only ones feeling cramped these days.

Though Canadian flights have long been dominated by Air Canada and WestJet, the emergence of newer carriers including Flair Airlines and Lynx Air has shaken up the sector, injecting fresh competition to a once-complacent market.

Most airlines are setting plans in motion to ramp up growth over the next year, adding more planes to an already crowded field -- and cheaper fares on the busiest routes.

"Whenever you've got players trying to establish themselves in these markets, it is a boon for consumers," said former Air Canada chief operating officer Duncan Dee.

Key domestic arteries such as Toronto-Vancouver, Vancouver-Calgary and Montreal-Toronto host more airlines than ever -- up to six now versus as few as two several years ago -- with fares dragged down by a pair of budget carriers.

The cost of a domestic round-trip plane ticket fell to $289 on average this fall, a drop of 24 per cent from 2019 levels and 11 per cent from a year ago, according to travel booking app Hopper Inc.

The hub-to-hub rivalries within Canada come ahead of a battle over routes running from big cities to sun destinations this winter.