Reg Wright, situated in his office with a panoramic view of Gander International Airport in Newfoundland, has long been accustomed to monitoring flights. However, recent years have seen a significant decrease in air traffic. In Newfoundland, we have a term called the ‘fisherman’s widow,’ referring to those who keep watch for the return of their loved ones at sea. During the pandemic, I spent considerable time gazing out the window, counting the dwindling flights, and wondering when we would see recovery, Wright reflects.
Unfortunately, recovery remains elusive. Since 2019, Gander has lost four routes, including a key WestJet service to Halifax. A third of our passengers have vanished… We are by no means recovered; Wright observes. Gander’s experience mirrors the situation faced by numerous small towns and cities across Canada. While total domestic passenger numbers have rebounded to near pre-pandemic levels, air travel to smaller communities and medium-sized cities has significantly declined. This reduction in service has led to increased fares and decreased connectivity for parts of the country.
According to the Canadian Airports Council, the largest 30 airports in Canada have seen passenger capacity return to approximately 98 percent of 2019 levels on average. In contrast, the next 30 airports have only reached about 70 percent of pre-pandemic capacity. The resurgence in air travel has predominantly benefited major city routes. For instance, flight volumes have surged by 19 percent on the Vancouver-Montreal route, 12 percent on Toronto-Vancouver, 10 percent on Calgary-Vancouver, and a remarkable 51 percent on Ottawa-Calgary over the past five years. Correspondingly, fares on these routes have decreased by 2 to 11 percent despite inflationary pressures.
Conversely, regional air travel remains significantly below pre-2019 levels. For example, the number of direct flights has decreased by 49 percent on the Sault Ste. Marie-Toronto route, 41 percent on Regina-Calgary, and 100 percent on Quebec City-Rouyn-Noranda between May 2019 and May 2024. Consequently, fares have risen substantially on these routes—by 54 percent, 16 percent, and 173 percent, respectively. Regional airports play a critical role in supporting essential services. In the Yukon, for instance, air travel is vital for accessing medical appointments in Vancouver, among other critical services. Airports are crucial for everything from firefighting to the delivery of groceries, explains Monette Pasher, president of the Canadian Airports Council.
The decline in regional flights has not only impacted leisure and business travel but has also put communities at a disadvantage, extending travel times and leading to more cumbersome layovers. Some travelers have turned to airports in the United States, such as Detroit, Plattsburgh, N.Y., and Bellingham, Wash., for more convenient flight options, diverting revenue from Canadian airlines and airports. Several factors contribute to the reduction in regional flights. During the pandemic, airlines seized the opportunity to modernize their fleets by retiring older, less efficient aircraft in favor of newer, larger models. These new planes are more efficient and allow for fewer, longer flights with greater passenger volumes. The reduction in the number of flights helps airlines to achieve higher profit margins and lower fuel costs.
Additionally, a shortage of pilots, exacerbated by a decline in enrollment at flight schools during the pandemic, has compounded the issue. “Pilots aren’t readily available; it takes time to train them,” Wright notes. Rising pilot salaries further challenge the economics of operating regional routes, with Duncan Dee, former COO at Air Canada, highlighting the difficulty in amortizing high pilot salaries across fewer passengers.
Competition on regional routes has also diminished. WestJet and Air Canada have both scaled back their regional services, with WestJet withdrawing from virtually all short-haul markets east of Winnipeg and Air Canada reducing its presence in the West while maintaining a stronger focus on Central and Eastern Canada. In Cape Breton, for instance, residents now must transit through Montreal or Toronto to reach Halifax, following the elimination of all direct flights by both major airlines. For the first time in 75 years, we’ve lost all our daily service, says Pasher, who resides in Sydney, N.S.
Calls for increased funding from the federal Airports Capital Assistance Program, which supports upgrades for small airports, have been made. The program’s budget, fixed at $38 million since 2000, is seen as inadequate, with airports advocating for an annual increase to $95 million. Some experts suggest looking to the U.S. Essential Air Service program, which subsidizes flights to small communities, as a model for supporting regional services. We have allowed the market to dictate the viability of regional services, says John Gradek, an aviation management expert at McGill University.
In Gander, Wright reflects on the broader implications: While the bustling activity at major airports like Pearson and Trudeau tells one story, it’s crucial to recognize the severe challenges faced by rural markets across the country. The stakes for maintaining regional air services are high, with implications for economic stability and community connectivity across Canada.
