Canadian airlines met record demand with increased capacity, which allowed the industry to expand by 11.3 per cent in 2017, says the latest Canadian Industrial Outlook: Canada’s Air Transportation Industry report by the Conference Board of Canada.
“Some of the main tailwinds Canada’s air transportation industry has benefited from in the past two years, primarily low fuel costs and a weaker loonie that is bolstering U.S. and foreign demand, will slowly reverse themselves over the next five years. But this shouldn’t put the industry’s expansion and ongoing profitability at risk,” said economist Sabrina Bond of the Conference Board of Canada in a statement.
Higher oil prices will lift the cost of jet fuel and weigh on industry profitability over the forecast and pre-tax profits in Canada’s air transportation industry are expected to reach $1.3 billion in 2018, down from $1.8 billion last year.
Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.
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