The federal government plans to increase safety fees for airline travelers in order to gain approximately $300 million in revenue. As part of the 2023 budget, the fees for domestic flights will increase from $15 to $20, and for international flights, from $26 to $34. Introduced in 2002 following 9/11 to enhance security, the fees have generated a profit of 8% above costs for the Department of Transport. The National Airlines Council (NAC) has previously raised the issue that between 2010 and 2016, the Air Travellers’ Security Charge (ATSC) generated a $547.5 million windfall for the government. The increase in fees is likely to encourage some Canadian travelers to fly from US airports where they can pay less. The Cabinet’s 2023 budget document indicates that raising the ATSC rates will fund air security costs and raise revenues from $279 million to $333 million by 2027, making $1.2 billion in total over four years.
Increased Canadian air passenger security fee by 33%.
