Canadians Continue Booking Summer Flights Despite Higher Airfares

Canadians are continuing to book summer travel even as airfares remain higher than they were a year ago, with airlines reporting little sign that higher ticket prices are discouraging demand, according to reporting by The Canadian Press.

Domestic economy airfares were 11% higher in late June than at the same time last year.

In May, passenger demand across North America remained steady despite economic disruptions linked to the Iran conflict, according to the International Air Transport Association (IATA).

"Demand still appeared to be largely resilient in the face of high fuel prices and airfares," IATA Director General Willie Walsh said in a news release issued Tuesday.

"While the recent sharp drop in oil prices is an encouraging development, the challenges created by the war will likely persist for some time." 

CP reports Canadian travellers also appear willing to make financial trade-offs to keep vacation plans intact. A survey by cashback rewards company Rakuten found that 42% of Canadian respondents are reducing spending in other areas to afford travel.

"We've been in the green for the better part of the last two months. Despite multiple increases in fares, we have not seen demand (fall)," Air Canada Chief Commercial Officer Mark Galardo told analysts on April 30 while discussing summer bookings.

While jet fuel prices have fallen in recent weeks, experts say consumers should not expect airfare reductions anytime soon.

"Oil supply through the Strait of Hormuz remains uncertain and it is likely to take time before the benefit of lower oil prices is reflected in ‘normalized’ jet fuel pricing. In the meantime, airlines who are operating on a 2.0% margin will have little choice but to continue testing demand resilience with higher fares that attempt to cover elevated fuel costs,” said Walsh.

According to IATA, jet fuel prices were down 24% from a month earlier as of last Friday. However, they remained 30% higher than they were in late June 2025.

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