The cost of free flights.

I wanted to book a flight to use up some of my Air Canada miles so I decided to take my wife to New York. I selected the flight and redeemed the miles – no problem until I saw this:

airportsurcharge.jpg

That’s right. $299.68 in taxes and surcharges for my "free" flight. Then again, it is every Canadian’s human right to be overtaxed. And Toronto is the most expensive airport in the world after all.

Just for fun, I thought I’d check the price for the same flight out of Buffalo, NY, not that far away, and a place we often fly out of as well. The total for the same flight was $494, with a $100 discount if I use my Expedia.com credit card.

I thought I’d check the actual ticket price for the same trip on Air Canada. A whopping $1419.80, almost three times the cost of the flight from Buffalo. Even knocking off the taxes and surcharges, that’s more than double the flight from Buffalo including all taxes.

So how is it that Air Canada can’t seem to make a decent profit?

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