Gatineau, Canada: Canada’s Competition Bureau warned on 28 October 2026 that a proposed expanded arrangement between Air Canada and United Airlines would likely harm competition on 10 Canada-US routes, potentially increasing fares and causing millions of dollars in consumer harm each year.
In a report delivered to the Minister of Transport, the Bureau said the proposal would allow the airlines to expand coordination, including on pricing, on routes where such coordination is currently restricted. The proposed arrangement is subject to a public interest review, and the Bureau’s findings will inform the Minister’s decision on whether to authorize it.
The Bureau found that Air Canada and United account for all nonstop passenger traffic on five of the 10 affected routes and have significant combined market shares on the others. It warned that removing the existing competitive constraints would likely lead to higher prices on most affected routes.
The Bureau also said high barriers to entry and expansion would make it difficult for other airlines to provide sufficient competition. Consequently, the proposed arrangement could create or reinforce monopoly or near-monopoly conditions on several routes.
The 10 routes connect Toronto, Montreal, Ottawa and Vancouver with Chicago, Cleveland, Denver, Houston, New York, San Francisco and Washington.
“Competition between airlines helps keep fares lower and gives travellers more choice and better service. Our review found that allowing Air Canada and United to coordinate on these routes would likely reduce competition on key Canada-U.S. routes and lead to higher prices for travellers,” said Jeanne Pratt, Interim Commissioner of Competition.
Air Canada and United currently cooperate through their Transborder Joint Business Arrangement, except on the 10 routes covered by restrictions under a 2012 consent agreement. The Competition Bureau said those restrictions remain in force.
Under the Canada Transportation Act, the Bureau is required to report competition concerns to the Minister when certain airline agreements undergo a public interest review. The Minister will consider the findings before deciding whether to authorize the proposed arrangement.
