Airport Security Fees to Increase by 33 Percent on May 1
An Access to Information memo from the federal finance department shows the new fees will bring in $1.248 billion from 2024 to 2028, according to Blacklock’s Reporter.
Under the changes coming on May 1, the ATSC fee will jump from $7.48 to $9.94 for a one-way domestic flight, and from $14.96 to $19.87 for a round-trip domestic flight.
A transborder flight would jump to $16.89 from $12.71, and the ATSC fee for an international flight will jump to $34.42 from $25.91.
The memo obtained by Blacklock’s says the fee provides revenue to offset the cost of security screening for passengers and their baggage.
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The airline industry did not appear to be happy with the increases when they were announced.
It called for an immediate review of fees, with an aim to find efficiencies and reduce costs.
“Third party fees and charges make the cost of air travel in Canada more expensive than most other countries, particularly the United States,” said the submission.
“Third-party fees represent a competitive disadvantage to Canadian carriers and reduce access to air travel for Canadians, given that many foreign and domestic air carriers will not choose to serve regional markets due to higher operating costs.”
It added, “U.S. carriers have already reduced flights to non-hub Canadian markets by 42% due to the high fees and costs associated with the Canadian market.”
Jeff Morrison, CEO of the NACC, told the Senate’s national finance committee on May 30 that it’s unlikely the increase in fees will lead to an improvement in service.
“That’s a direct carry over to the passenger,” added Mr. Morrison. “In other words, that charge gets automatically added to the ticket price. In fact when you pay for an airline ticket you can see that carve out and what that fare is. Airlines don’t have a say in that.”
“When you have this constant increase of third-party fees and charges, including those by government departments that they do not have in the United States,” he continued. “You’re absolutely correct that the cost of air travel in Canada is going to be higher than it would be south of the border.”
The NACC’s budget submission said fees should be reviewed, and should be “bench-marked” with foreign jurisdictions, with the goal of reducing the costs to airline passengers in Canada.
The Air Travelers Security Charge was first introduced in 2002 after the 9/11 terrorist attacks, as a way to help finance airport security upgrades.
