Canadian airfares have remained elevated this summer despite a notable decline in jet fuel prices, with domestic ticket costs averaging 11 percent higher than a year ago and international fares holding steady compared to 2025 levels. This trend persists even as energy prices have fallen, reflecting sustained demand amid changing travel patterns.

According to data from travel search platform Kayak, domestic economy fares in late June remained substantially above last year’s rates, while international tickets showed little year-over-year change. Airlines have reported robust bookings leading into the peak summer period, with passengers continuing to fly despite geopolitical tensions and a general avoidance of U.S. destinations among Canadian travelers.

“We’ve been in the green for the better part of the last two months,” Air Canada Chief Commercial Officer Mark Galardo told analysts on April 30. “Despite multiple increases in fares, we have not seen demand [fall].” Aviation experts attribute this to strong consumer willingness to pay higher prices throughout the summer months. John Gradek, an aviation management instructor at McGill University, noted the carriers’ sustained pricing power domestically, saying, “We’ve got a very strong will on the part of the carriers not to put Canada on sale this summer, because demand is still strong even at those higher rates.”

Statistics Canada reported that approximately 2.5 million passengers boarded domestic flights in May, a 6.4 percent increase compared with May 2025. Meanwhile, air travel from Canada to the United States declined for the 16th consecutive month, falling 2.1 percent year-over-year, consistent with a longer-term shift away from U.S. tourism. Increased cross-border car traffic partially offset the decline in air travel.

Observers link this travel pattern shift in part to political factors and evolving social attitudes. Wayne Smith, director of the Institute for Hospitality and Tourism Research at Toronto Metropolitan University, highlighted Canadian reluctance to visit the U.S. amid concerns over immigration enforcement and perceived misalignment of values, especially among minority and LGBTQ+ populations. These apprehensions have bolstered domestic tourism demand.

Despite high ticket prices, some Canadians have prioritized travel by reducing spending in other areas. A survey by cashback rewards company Rakuten found that 42 percent of Canadian respondents reported cutting back on non-travel expenditures to afford costlier flights. “Many are making intentional trade-offs elsewhere to protect travel, reflecting a growing desire to reconnect and recharge,” said Rakuten’s general manager Jennifer LaForge.

Although jet fuel prices have dropped significantly—down 24 percent from a month earlier—prices remain about 30 percent above late June 2025 levels. The International Air Transport Association (IATA) notes these fluctuations, and some Canadian airlines have responded by lowering fuel surcharges on limited fare types. WestJet reduced its companion voucher levy from $60 to $40, and Porter Airlines halved the surcharge on new reward bookings to $20. However, these adjustments affect a relatively small portion of passengers.

Personal finance and travel expert Barry Choi cautioned that airlines typically maintain elevated fares once increased, as sophisticated pricing algorithms allow carriers to optimize revenue. Noting an example, he pointed out that a one-way flight from Los Cabos to Toronto in December is priced at about $700, which he finds disproportionate compared to transatlantic fares. “They know exactly what people are going to pay and what people will buy,” Choi said.

International fares from Canada experienced a slight decrease of 2 to 3 percent in June compared to the previous year, following a spike earlier in the spring tied to an elevated demand environment and ongoing reluctance toward U.S. travel. Going forward, fares are expected to remain high for the near term, with analysts predicting little reduction before the early autumn travel period unless demand significantly softens.