As several lower-cost carriers fight for space in the Canadian travel market, Porter Airlines CEO Michael Deluce told Canadian Press that at least one of them won’t survive the next two years.
“I don’t believe that the traction’s there for the multitude of ULCCs that are in the market,” Deluce said in an interview with the news agency. “I would say not all of those plans will come to fruition.”
Deluce did not venture an opinion on the viability of specific carriers, but he’s confident that Porter will survive any shakeout.
Porter Airlines
2023 was a huge year for the carrier that built its business on short-haul turbo-prop flights from Billy Bishop Toronto City Airport. Over the past 12 months Porter has welcomed 25 new Embraer E195-E2 jets, hired 300 pilots and inaugurated many new routes.
Porter recently placed a firm order for 25 more Embraer jets, with a list price of US$2.1 billion. It had previously ordered 50 of the narrow-body Brazilian planes, which Porter offers in a 132-seat 2x2 configuration.
But Porter isn’t the only Canadian carrier with big growth plans. By the end of next year, Flair Airlines aims to grow its fleet to 26 planes from 21, while Lynx Air aims to almost double its fleet to 17 from its current nine. Another recent entrant, Canada Jetlines says it will add a dozen planes to grow its three-aircraft fleet to 15 in just over a year.
Increased competition is driving down Canadian airfares, to the tune of about 20% year-over-year.
Porter, which recently announced a major joint venture with Transat, and yesterday launched an enhanced partnership with Alaska Airlines, says the efficiency and size of the Embraer birds puts it in a strong competitive position.
“It allows you to take less risk in entering new markets, with less seats to fill. As well, you can offer more frequency, which is important to customers,” Deluce told CP.
“You can enter mid-sized markets with daily service that a larger 190- or 200-seat aircraft could not.”
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