An Edmonton man says he was in the wrong place at the wrong time when he was injured by members of the Edmonton Police Service last year.
Where do airlines stand in 2023? Industry observers on airfare trends and profit margins
With the price of airfare expected to drop early in the new year following a surge last summer, industry observers say continued competitive pricing in the market may not bode well for airlines.
Non-seasonally adjusted consumer price index (CPI) figures from show that the cost of air transportation in Canada rose approximately 46.5 per cent between January 2022 and this year's high posted in August.
Despite dropping more than 18 per cent through September and October, air transportation remains above pre-pandemic levels. Meanwhile, seasonally adjusted CPI figures from have followed a similar trajectory.
"Whether it was domestically, whether it was to the U.S., whether it was to Asia, whether it was to Europe, airfares did climb and it was in response to a significant demand in the marketplace, where services were being offered, and that continued in the summer," said John Gradek, McGill University academic programs co-ordinator in supply chain, logistics, operations and integrated aviation management.
Gradek told CTVNews.ca in a telephone interview that the COVID-19 pandemic and government restrictions on air travel crippled demand, causing airlines to drop fares to entice more people to fly.
As many travel restrictions were lifted earlier this year, along with new competition from a number of low-cost carriers, Gradek said demand increased and airlines decided to increase their level of capacity. When demand did not soften, airports became overwhelmed.
Now, as typically occurs in the fall, demand has fallen and fares have dropped in order to stimulate demand again.
"I would say that airfares that you have now showing up in the marketplace are pretty close to what we had in the depths of the pandemic when there was very little demand," Gradek said. "So carriers have basically reverted to mid-pandemic pricing levels."
Tae Hoon Oum, a professor at the Sauder School of Business at the University of British Columbia, told CTVNews.ca in an email that airlines have lost a lot of money during the pandemic and are sitting on large amounts of debt.
"They want to make money by charging high prices since many current traveller(s) became insensitive to price, especially premium economy or business class travellers," he said.
Staff loss and inadequate training also mean airlines, on the supply side, aren't able to offer more flights and naturally can charge higher prices for flights, most of which are full, Oum added.
While ticket prices do increase over the holidays, Gradek said this won't last long.
A search Monday on Flair Airlines' website shows that the price of a one-way ticket between Toronto and Calgary on Dec. 22 costs $360 compared to between $59 and $79 from mid- to late-January.
This, Gradek argues, puts airlines in a position where they don't want to be priced out of the market by selling too high, but also won't see much profitability as a result.
Many carriers could end up on shaky ground financially, he says, at a time when consumers also may be considering how much discretionary income they have to travel.
"So the question you have to ask yourself is: Is this something that's going to be acceptable longer term in the marketplace?" Gradek said.
With files from CTVNews.ca Writer Tom Yun and CTV National News Correspondent Heather Wright
CTVNews.ca Top Stories
Air Canada union head says she'll resign if pilots reject deal
The head of the Air Canada pilots union says she'll step down if members opt not to approve a tentative deal with the airline, raising the stakes as aviators mull whether to accept hefty salary gains or drive an even harder bargain.
Toronto police say they are searching for a suspect who allegedly shot and killed his brother in an argument at a Scarborough housing complex late Saturday night.
John Mulaney and Olivia Munn have second child, a daughter named Mei
Comedian John Mulaney and actor Olivia Munn now have a second child, a daughter named Mei June Mulaney.
Kate, the Princess of Wales, makes first public appearance after cancer treatment
Kate, the Princess of Wales, made her first public appearance Sunday since she announced she had completed chemotherapy and would return to some public duties.
2 suspended from U.S. college swim team after report of slur scratched onto student's body
At least two students at Gettysburg College in Pennsylvania have been suspended from the swim team after a report that a racial slur was scratched onto a student's body, officials said.
How does your health measure up? Criticism of long-time tool used to track progress
Body mass index, a long-time tool used to measure a person's health, may soon be out the door as some health professionals push for a system they say is more accurate.
North Carolina's Robinson, omitted from Trump rally, avoids comment on report about online posts
North Carolina Lt. Gov. Mark Robinson avoided directly weighing in during a gubernatorial campaign event Saturday on a CNN report outlining evidence that he made disturbing posts on a pornography website's message board more than a decade ago.
Netanyahu considering plan to force all Palestinian civilians out of northern Gaza to besiege Hamas
Israeli Prime Minister Benjamin Netanyahu is considering a plan to force all Palestinian civilians out of northern Gaza, including Gaza City, in order to lay siege to Hamas and force the release of hostages.
Local Spotlight
Cole Haas is more than just an avid fan of the F.W. Johnson Wildcats football team. He's a fixture on the sidelines, a source of encouragement, and a beloved member of the team.
Getting a photograph of a rainbow? Common. Getting a photo of a lightning strike? Rare. Getting a photo of both at the same time? Extremely rare, but it happened to a Manitoba photographer this week.
An anonymous business owner paid off the mortgage for a New Brunswick not-for-profit.
They say a dog is a man’s best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.
A growing group of brides and wedding photographers from across the province say they have been taken for tens of thousands of dollars by a Barrie, Ont. wedding photographer.
Paleontologists from the Royal B.C. Museum have uncovered "a trove of extraordinary fossils" high in the mountains of northern B.C., the museum announced Thursday.
The search for a missing ancient 28-year-old chocolate donkey ended with a tragic discovery Wednesday.
The Royal Canadian Mounted Police is celebrating an important milestone in the organization's history: 50 years since the first women joined the force.
It's been a whirlwind of joyful events for a northern Ontario couple who just welcomed a baby into their family and won the $70 million Lotto Max jackpot last month.