How flying in Canada fell from glamour to cramped cabins, and what can change
Air travel in Canada has shifted from lavish perks to shrinking seats and add-on fees. Experts point to consolidation, taxes and unbundling. Policy changes could help.
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By Torontoer Staff
Air travel in Canada has moved from elite comforts to a budget-driven model defined by tighter seats and extra fees. The shift reflects decades of industry change: deregulation, consolidation into a few dominant carriers, and an embrace of ancillary revenue.
The contrast is stark. In 1971 Air Canada converted the upper deck of its Boeing 747s into a first-class lounge with a dance floor and bar. The space lasted only a year before being replaced by more seats, as airline executives prioritised revenue per flight over passenger amenities.
From airborne nightclubs to packed cabins
Wide‑body jets and expanding route networks made flying more accessible in the 1970s, and airlines competed on comfort as well as price. That changed after the de facto deregulation of the Canadian airline industry in 1985. Fierce competition eliminated or absorbed many carriers, leaving Air Canada and WestJet as the dominant players.
People figured they could make more money putting seats in there.
Donald Quistberg, former Air Canada pilot
With fewer rivals, airlines could lean on price strategies that squeezed competitors and protected profits. A 2023 Competition Bureau study found Air Canada and WestJet account for 56 to 78 per cent of domestic passenger traffic at major Canadian airports, leaving the market highly concentrated and competition fragile.
Higher fares, higher fees, lower service
Canada’s average domestic airfare remains well above the United States. In 2024 Air Canada reported an average domestic fare of $966, compared with about $532 in the U.S. Part of that gap reflects taxes and airport fees, but market concentration also plays a role: when a new competitor enters a route, fares fall on average by nine per cent.
Airlines have also unbundled services. Things that were once standard, like checked bags, meals and seat selection, are now often optional and subject to extra charges. Carriers argue unbundling gives travellers choice and keeps base fares lower. Critics call it a way to shift costs onto passengers and complicate price comparisons.
The idea is you only pay for the services you want or need.
Peter Fitzpatrick, Air Canada spokesperson
Flight attendants and long‑time staff say service levels have declined alongside the shift to ancillary revenue. Wesley Lesosky, who began at Air Canada in 2002, recalled the transition from regular snack and meal services to a largely pay‑for model.
All the service on board has definitely deteriorated when it comes to what it used to be.
Wesley Lesosky, Air Canada flight attendant
Smaller seats, slimmer margins
Aircraft interiors have changed too. Early 747 economy cabins typically offered about 33 inches of pitch and 19 inches of seat width. Newer narrow‑body and twin‑aisle jets often provide 31 inches of pitch and closer to 17 inches of width. The move increases capacity per flight but reduces comfort, especially for taller travellers.
Airlines operate on thin margins, often three to five per cent in good years, and rising costs for fuel, labour and financing pressure carriers to find new revenue streams. The COVID-19 pandemic accelerated that trend as airlines sought to recover losses through ancillary fees.
Options for passengers and policy fixes
Experts and consumer advocates point to several practical steps that could improve the flying experience: encourage competition on domestic routes, limit abusive ancillary practices, increase transparency, and adjust the tax and fee framework that raises costs for travellers.
- Strengthen entry for upstart carriers by reviewing route access and slot policies
- Require clearer price breakdowns and ban misleading base fares
- Consider regulatory measures to protect carry‑on allowances and faster reimbursements
- Review taxes and airport fees that disproportionately raise domestic fares
Transport Canada points to the Air Passenger Protection Regulations, which require airlines to disclose optional fees and improve transparency. Consumer advocates want stronger steps. Gabor Lukacs of Air Passenger Rights highlighted recent European moves to enshrine clearer rights for carry‑on allowances and refunds.
Canadians have been conditioned to dealing with this duopoly for years. My take is that maybe it’s time we talk about regulation again.
John Gradek, McGill University aviation lecturer
Gradek has proposed targeted regulation, such as price floors on certain routes for dominant carriers. The idea is to prevent incumbents from using ultra‑low pricing to squeeze rivals, while preserving opportunities for new entrants to compete on service and innovation.
What travellers can do now
Shoppers can pressure airlines by comparing total trip costs, including fees, and by favouring carriers that include basics in the ticket price. On popular routes, supporting smaller carriers can help sustain competition. For systemic change, industry leaders and policymakers will need to address market concentration and the fee structure that drives airline behaviour.
Fixing the flying experience in Canada will not be quick. It requires policy adjustments, clearer consumer protections and a market that rewards service as well as price. Absent those changes, passengers are likely to see more packed cabins and growing reliance on add‑ons.
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