RE:Buying customersI watched this morning and the same flights are at 691 $. Not sure that at that prices, once fees and taxes excluded, there’s enough money to pay the fuel.
Air Canada desesperately needs customers and it makes big investments to grab reservations and bring back confidence in air travel.
IB1,
In June 2015 I booked my son Air Canada Toronto to Narita. I booked about six weeks before the flight. The basic economy class ticket was in the $700 range. I was able to upgrade to a premium economy ticket for just over $1100, so I booked PE. Price of oil at the time was about $60 dollars a barrel.
So $484 is a great deal for your son, but how many seats will be offered at that price? Those flights are ten months from now. You mention that the seat cost now for the same flight is $691.
When I look at fares six weeks from now, the price is about the same for basic economy ($690) and I can upgrade to a premium economy ticket for $1,178. These fares are not out of line with the prices in 2015. It’s my understanding that on long haul flights fuel makes up a great percentage of the total seat cost than on short haul flights. Today’s fuel price is $40, and AC will no doubt have put fuel hedges in place given recent oil prices, so quite a bit less than in 2015.
In 2014, when my son was living in the USA, I sent him on Delta to Japan, and the basic economy seat was $700 (USD). Price of oil in summer 2014 was $95.
As far as the bonus points, that is certainly an enticement, but at what ‘real’ cost to Air Canada, other than to build loyalty? It’s not unlike switching to a new credit card where loyalty points are offered.
I guess the question for you is, are you really basing your decision to buy Air Canada shares on seat sales prices???
A neighbour of mine is a pilot for AIr Canada, and he tells me that domestic traffic is definitely increasing. They are flying larger aircraft on the longer routes with fewer frequencies and more connecting flights, all of which is keeping costs lower than would otherwise be the case. And based on my sources i will not be surprised to see Canada remove the 14-day rule removed in Sept for flights to Europe, and likely to Asia as well.