(Yicai) April 22 -- Flight services between China and Canada are poised for a substantial increase in capacity as Canadian regulators relax curbs to accommodate rising trade and travel demand between the two countries. Ticket prices on these routes have already fallen significantly from their highs two years ago.

Airlines from both countries are now permitted to gradually increase direct passenger flights and can also operate up to 20 all-cargo flights per week, Transport Canada, the Canadian government’s department responsible for transportation regulations, said on April 20. Carriers have also been granted reciprocal access to all destinations in each country.

“Increasing passenger and cargo flights with China is a very positive step towards our trade diversification goals while also reinforcing our strong people-to-people ties,” said Canadian Minister of Transport Steven MacKinnon. “We are giving Canadian travellers more choice and more convenience while growing our commercial relationship with China.”

Currently, there are six Chinese airlines operating routes between the two countries, namely Air China, China Eastern Airlines, China Southern Airlines, Xiamen Airlines, Sichuan Airlines and Hainan Airlines. On the Canadian side, only Air Canada operates these routes, and it is not fully utilizing its allocation of 24 flights per week.

Flight services between China and Canada have recovered more slowly than other international routes following the Covid-19 pandemic. The number of flights were increased to 24 a week by the Canadian government in October 2024, compared with 70 prior to the pandemic.

One key constraint is the need to avoid Russian airspace, which increases operating costs. As a result, Air Canada has prioritized more profitable transatlantic routes while maintaining limited capacity on China routes. This strategy allows it to keep ticket prices at a higher level, an industry insider told Yicai.

After the pandemic, as travel between China and Canada gradually rebounded, demand outpaced supply, leading to sharp increases in airfares. In 2024, the price of a one-way direct flight from Shanghai to Vancouver at one point exceeded CNY20,000 (USD2,932).

However, prices have since come down. Yicai checked flight data today and found that in May, the price for a one-way direct flight from Shanghai to Vancouver starts from CNY6,000 (USD879), while some connecting flights cost under CNY5,000.

China is Canada’s second-largest single-country trading partner in goods. Last year, bilateral trade reached USD124.8 billion, of which Canadian exports to China amounted to USD34.1 billion, while imports from China came to USD90.6 billion.

Editors: Dou Shicong, Kim Taylor