Canada could lose one of its airlines in the next couple of years, says the head of Porter Airlines.
In an interview with Canadian Press, Porter CEO Michael Deluce said the Canadian travel market is too small to keep all of Canada’s airlines afloat for two more years.
“I don’t believe that the traction’s there for the multitude of ULCCs that are in the market,” Deluce said in an interview.
One industry executive told Open Jaw, "I totally agree with Michael Deluce. While there may be large volumes of passengers flying, the pressure on yield will force at least one of these carriers out of the market.
"Fuel is a massive risk for these carriers - any significant surge in the market prices will be devastating to their profitability."
CP noted that Flair Airlines hopes to increase its fleet to 26 planes from 21 and Lynx Air to 17 aircraft from its current nine. They both hope to hit 50 planes over the next two to three years.
It’s not billed as a low-cost carrier, but Canada Jetlines also is expanding, with plans to go from three aircraft to 15 in the next 13 months.
“I would say not all of those plans will come to fruition,” Deluce said, declining to suggest which airline might not make the cut.
Porter has been on a major expansion kick of late, with new destinations announced in Florida, California and elsewhere. It also has announced strategic partnerships with Air Transat and Alaska Airlines, as Open Jaw reported.
