July airfaresFrom Nat Bank Financial NBF:
Airfares in Canada down 2.7% y/y in July and up 12.7% versus 2019 according to CPI data Canadian CPI data for July was released this morning, and the air transportation component decreased y/y for the first time in five months, but was still ahead of July 2019 (pre-COVID).
StatCan undertakes a fairly comprehensive monthly fare survey, and based on this, we note the following:
• Relative to July 2023, the index was down 2.7%.
The y/y decrease in July follows a 2.0% y/y increase in June and a 4.5% y/y increase in May.
Fares were up 8.4% sequentially after increasing 5.7% sequentially in June, noting that July is a seasonally stronger month for air travel.
• Relative to July 2019, the index was up 12.7%.
The July increase versus 2019 was below the 18.6% increase seen in June and the lowest increase relative to 2019 since January this year.