Price of air travel fell more than 20% in September: StatCan

Canadians paid significantly less for their flights in September compared to the same month last year, according to new data from Statistics Canada.

In its latest Consumer Price Index report, published Tuesday, the federal agency said air transportation prices were down 21.1 per cent year-over-year in September, even as headline inflation grew 3.8 per cent from a year earlier. 

William G. Morrison, professor of economics at Wilfred Laurier University, said the steep decline is the result of a major increase in supply, as airlines “move closer toward pre-COVID passenger levels.”

“As supply increases, market prices tend to decrease – or increase at a slower rate. All else held constant,” Morrison said in an email.