A new study from the Montreal Economic Institute just confirmed what most Canadians already know: The cost to fly in this country is sky high.
Interestingly though, the study doesn’t point to the greediness of airlines as the culprit (even though they’re constantly trying to cram us into smaller seating for more money). Researchers actually blame the government for implementing high taxes that not only gouge airline passengers, but “undermine the competitiveness of the Canadian airline sector.”
Which means it may be time for those taxes to begin their descent.
Out of 138 countries, the study found that Canada is the eighth most expensive when it comes to airline taxes and fees. As a result, consumers end up with empty pockets and a more limited airline selection in terms of international routes. That’s why you likely know someone who’s travelled south of the border to get a better deal on flights in the past.
Those people certainly aren’t wrong. A Senate Report from 2012 actually compared what a flight would cost from Toronto to Orlando, Florida against the exact same flight only from Buffalo, New York to Orlando. The base price for a ticket was actually cheaper when purchased in Canada ($118 vs. $124), but by the time all the taxes and fees were factored in, a Canadian would pay roughly 30 per cent more. It’s also worth noting that when you look at the ticket purchased in the U.S., the only fee added on is a single U.S. tax. In Canada, six different fees were piled on, ranging from “Canadian Airport Improvement Fees” to a “security charge.”
It’s no surprise Canadians are getting frustrated. Sure enough, the study calls on the Canadian government to lower taxes that affect airlines and airports.
You can learn more about the research in the video above.