Descending loonie bites into cross-border flying

The weak Canadian dollar isn’t just hurting cross-border shopping. U.S. airports that enjoyed a surge in the number of Canadian passenger levels when the loonie was valued higher than the American dollar are now seeing the flip side of currency swings.

Low ticket prices drew about five million Canadians annually in recent years to fly out of U.S. airports. But the Burlington International Airport in Vermont estimates the number of Montreal passengers is down about 10 per cent so far this year.

Gene Richards, the airport’s aviation director, said he’s surprised the drop-off hasn’t been greater, adding convenience and the lure of lower taxes may be limiting the currency impact.

“We’re all challenged a little bit, but we look forward to the day when things turn back and it’s a better deal for Canadians.”

The number of Canadians travelling south fell by five per cent again in August, marking the 11th monthly decrease in a year. Stateside travelling is 26 per cent lower than a year ago, according to Statistics Canada. Same-day car trips are off 34 per cent while total car trips are down 24 per cent.

Bellingham International Air- port in Washington state said it experienced a 25 per cent decrease in Canadian airline passengers in September as fewer people cross the border from British Columbia.

“We believe the decline in the Canadian dollar has a direct impact on the number of people travelling through the airport,” said aviation director Mark Leutwiler. However, he expects demand will pick up when Alaska Airlines begins direct flights Nov. 1 to Hawaii and Las Vegas from Bellingham.

Canada’s airline sector has long called upon Ottawa to lower airport rents, fees and taxes to stem the flow of passengers crossing the border for flights.

The National Airlines Council of Canada says there is a “competitive gap” stemming from government policy that treats the industry as a source of revenue. Canada has the fifth-highest ticket and airport charges out of 140 countries, according to the World Economic Forum.

Ahead of their electoral victory last week, the federal Liberals said they would “look at ways” to help the Canadian airline industry be more competitive. But American airport operators said any changes likely wouldn’t be large enough to have a real impact on traveller behaviour.