Canada’s Competition Bureau said the proposed Air Canada-United Airlines coordination would likely weaken competition on 10 routes and raise fares on eight, causing millions of dollars in annual consumer harm.
The Competition Bureau said the proposal would likely weaken competition on 10 routes between Canada and the United States and raise ticket prices on eight. It said the airlines account for all nonstop passenger traffic on five routes and have significant combined market shares on the others.
The carriers are seeking approval to expand coordination on 10 routes restricted by a 2012 consent agreement. The Bureau’s report will inform a Canadian government public interest review. Air Canada said the partnership has created 20 new routes since 2022, and more than 4.3 million passengers have flown jointly on the airlines.
