Competition Bureau Canada: Air Canada-United expansion 'would likely harm competition'

Competition Bureau Canada (CBC) concluded (28-Oct-2026) a review on a proposed arrangement between Air Canada and United Airlines, stating the expansion "would likely harm competition" on 10 routes between Canada and the US. CBC's concerns comprise the following:

• The arrangement would allow Air Canada and United to expand their coordination, including on pricing, on 10 routes where such coordination is currently restricted by a 2012 consent agreement;
• The arrangement would eliminate "an important source of competition" between the airlines on these routes. Air Canada and United currently account for all nonstop passenger traffic on five of the 10 routes and have "significant combined market shares on the others";
• CBC found the proposal "would likely result in higher prices on most affected routes, resulting in millions of dollars in consumer harm each year";
• CBC concluded that barriers to entry and expansion are high and competition from other airlines "would be unlikely to constrain" Air Canada and United.

Interim Commissioner of Competition Jeanne Pratt stated: "Allowing Air Canada and United to coordinate on these routes would likely reduce competition on key Canada-US routes and lead to higher prices for travellers". [more - original PR] [more - Aviation Week]