![]() ![]() Almost all Canadian international airports have an Airport Improvement Fee, for instance, that does not depend on the airline you fly with. These fees and taxes are not levied by the airlines themselves but by the local and federal governments, or by the airport authorities. It should be noted that these taxes are mandatory, with travellers unable to complete a booking without paying them. $28.60 – Transportation International/Domestic Tax (US).$5.19 – Animal and Plant Health Inspection Service (APHIS) User Fee for the United States.$12.10 – Air Travellers Security Charge.We found that out of the $287.08 (in Canadian dollars) we had to pay for the standard economy ticket, $174 was for the transportation service and around $113 or roughly 39% of the total fare price was collected in various federal, regional, and airport taxes: Our team “booked” a one-way flight from Toronto to Orlando, Florida during peak season (July 3) with one of the largest airlines in Canada. The exact rate of these taxes varies, depending on the province and the airport, so in order to calculate the approximate tax burden on airfares, we carried out an experiment. In fact, roughly 15% to 40% of the airfare could be federal and regional taxes, as well as airport surcharges. A fuel surcharge, an NAV Canada surcharge and more may also be added to the base fare price. ![]() However, this is not the real reason why airfares are so expensive in Canada.Ī large percentage of the prices are, in fact, various government taxes and surcharges, including the Goods and Services Tax (GST), the Harmonized Sales Tax (HST), Air Travelers Security Charge, and the Airport Improvement Fee for departing travelers. Moreover, compared to the United States, the low population density in much of Canada means that fewer people tend to fly to and from particular destinations. Until just a decade ago, there were no budget airlines in Canada, and large companies such as Air Canada and WestJet did not have a lot of competition, allowing them to charge their clients as much as they wanted to. Hidden Federal and Regional Taxes & Airport Surcharges Interestingly, domestic flights are not much cheaper than flights to the United States but more importantly, budget airlines have larger “hidden” fees than well-established carriers with large fleets and more expensive fares. ![]() We analyzed the prices for one-way domestic fares and one-way fares for flights to some of the most popular holiday destinations among Canadians – Orlando, Florida, Hawaii, Mexico, London, and Paris. The team at TradingPedia set out to check whether these low cost flights are really cheaper, or whether after paying for their baggage and various other extras, travelers end up spending the same amount. Meanwhile, the arrival of budget airlines in recent years has brought more affordable options for travelers. Although it is no secret that a large portion of these extremely high costs comes from various government taxes, the final price is often a result of additional fees for baggage, seat selection, and more. While many people are already happily booking their summer holidays, Canada has some of the most expensive airfares in the World, with airline tickets costing much more for similar distances here than in the United States, Europe, Asia or even Australia. ![]()
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