Air Canada says it has cut fares in recent months as competition increases in the airline industry. WestJet in particular has taken a slice of Air Canada’s business as lower fuel costs and increasing passenger numbers create new opportunities. BMO Capital Markets said in a client note that low air fares may not last too much longer, especially if oil prices increase. However it noted that WestJet was keen to expand will want to be highly competitive against its larger rival.
More market talk: