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COVID-19 continues to wreak havoc on Canadian aviation

Analysis

Canada's initial travel restrictions have been firmly in place since Mar-2020, and have created challenges for the country's airlines, adding another obstacle for operators as they work to navigate deeply depressed demand.

Canadian operators have routinely pushed for the lifting of some restrictions, urging the country's government to adopt a more science-based approach in managing travel during the COVID-19 crisis.

That work to persuade the government to adopt different tactics in managing COVID-19 has resulted in Canada's two largest airlines aiming to conduct voluntary COVID-19 test trials for passengers; however, it is not clear if those efforts will be successful in changing the government's stance on quarantine requirements.

As the travel restrictions remain in place, Canada's airlines are also facing rising fees from the nation's privatised air traffic services provider, Nav Canada. The increases are occurring as Canadian operators are working to slash costs and bump up weak revenues in order to whittle down cash burn.

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