How did Canadian airfare prices get so far out of control?
Posted June 20, 2023 7:13 am.
In today’s Big Story podcast, it wasn’t that long ago that airlines were slashing prices and offering huge seat sales to lure timid customers back onto planes during the pandemic. Now, it seems like those days are over. For at least a year now, prices have been climbing and the summer travel season marks a new peak.
John Gradek is a faculty lecturer in supply chain, logistics, operations and aviation management at McGill University, he says airlines are charging more per ticket to make up for revenue they lost during the pandemic.
“The airlines are pushing the envelope as much as they possibly can to maximize revenue and profitability,” he says.
How much of this is based on an airline’s increased costs, and how much is a profit grab? What can you do to try to find cheaper fares? And why might you and your friend see different prices for the same seat on the same plane?
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