Canadians are becoming more eager to fly again, and airfares are returning to pre-pandemic levels as a result.
Those are a couple of key findings from research conducted by Expedia Group, in collaboration with ARC.
In Canada, Expedia Group's data shows a 210% year-over-year growth in air searches between 2020 and 2021, with Toronto and Vancouver topping the 'most searched for destinations' list (20%) by Canadian travellers, trailed by Calgary and Montreal (10%).
The intent to travel domestically continues to rise in Canada, with most of these Canadian flights (90%) planned for Q4 2021 - half of them in October.
While domestic travel has been driving the air industry's recovery here, Expedia Group and ARC data also shows encouraging signs for the return of international travel. Canadian search data showed that in comparison to 2020, 2021 has seen more interest in international destinations, including London, Delhi, and Las Vegas.
Over the last six months, there has been a consistent rise in international short haul flights, with August 2021 seeing a 66% increase since February this year, according to ARC.
The research also revealed airfare pricing trends:
- Premium fares are not rebounding as quickly as economy fares. In 2021, premium tickets were 193% more expensive than economy tickets compared with 2020 where they were 246% more expensive and 2019, at 260% more expensive. So, for those hunting for a good deal on more comfort, 2021 is looking pretty good.
- Airfares booked by Canadian travellers for the first half of 2021 have shown a gradual return to pre-pandemic levels. By August 2021, average pricing was only down by 6.4% compared to the same month in 2019.
In a new outlook statement from IATA, the airline organization says North American carriers are expected to outperform other regions, led by the fast recovery of the U.S. domestic market. And with the U.S. opening to vaccinated travellers from November, the international market should progress as well.
The U.S. airline industry started to turn cash-positive in the second quarter of 2021 and IATA projects that it will be the only region in positive financial territory in 2022 with an expected $9.9 billion profit.
IATA director general Willie Walsh says that "while serious issues remain, the path to recovery is coming into view."
It's a long way back, however, as Walsh went on to emphasize the incredible impact of the pandemic.
"The magnitude of the Covid-19 crisis for airlines is enormous. Over the 2020-2022 period total losses could top $200 billion. To survive airlines have dramatically cut costs and adapted their business to whatever opportunities were available."
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