Despite slipping a bit in August, fares rose 12.5 per cent at Air Canada for July and August and were 11.3 per cent higher than a year earlier at WestJet.
The country’s two largest airlines implemented fare increases in July, mostly on domestic routes.
Analyst Walter Spracklin says he expects fares will increase further, with Air Canada likely being more aggressive in passing along oil price increases.
He says Calgary-based WestJet is likely still recovering from weak booking levels resulting from the threat of a pilot strike.
Passenger traffic remains strong with WestJet reporting 8.1 per cent growth in August, less than the capacity growth of 10 per cent.