The Canadian market, long defined by two dominant incumbents and consumer reluctance to embrace the ultra-low-cost model, is now poised to enter a period of price wars and suppressed fares as the pandemic upends the aviation sector.
Plummeting demand for aircraft meant carriers could access them more quickly and cheaply. A pilot shortage that had plagued the industry is no longer as severe. And greater availability of airport slots has given companies leverage when striking deals with airport authorities. Several carriers have been beefing up over the past six monthsin preparation for a clash with Air Canada and WestJet Airlines Ltd. -- and with each other -- particularly for domestic flights and to sun destinations.
Meanwhile, WestJet budget subsidiary Swoop continues to expand, unveiling nine new routes out of Edmonton this week. "You'd go to chat boards online and people were grumbling about having to pay extra to check in a bag or even to pay money for a carry-on bag. But Canadians are starting to realize that, hey, if I can pay a really rock-bottom airfare, I've got money left over to spend at the destination."
"Air Canada and WestJet won't take the new incursion by Porter lying down. They're going to come out and be robust competitors," Kokonis said, adding that prices will fall "for sure" compared to pre-pandemic fares.