Canada's Competition Bureau says a proposed expansion of Air Canada–United Airlines coordination could increase fares on 10 Canada–U.S. routes, with the final authorization decision still pending.
What the watchdog found
In an October 28 report to the Minister of Transport, the Competition Bureau concluded that a proposed arrangement between Air Canada and United Airlines would likely substantially reduce competition on 10 Canada–U.S. routes. The proposal would broaden the airlines' ability to coordinate, including on pricing, where a 2012 consent agreement currently restricts such cooperation. The Bureau says those limits remain in place while the proposal is reviewed. It found that the two carriers already account for all nonstop passenger traffic on five of the 10 routes and hold large combined shares on others.
Possible impact on travellers
The Bureau's assessment is that greater coordination would likely increase prices on most of the affected routes and could lead to millions of dollars in consumer harm annually. The 10 routes link Canadian cities including Toronto, Montreal, Ottawa and Vancouver with U.S. destinations such as Chicago, Denver, Houston, New York and San Francisco. These are the Bureau's competition concerns, not announced ticket-price increases. Airfare outcomes would depend on whether the proposal is approved and on how the market responds.
What happens next
The Minister of Transport will consider the Bureau's findings under the Canada Transportation Act as part of a public-interest review and decide whether the arrangement may proceed. The Competition Bureau did not announce a ban or a final ministerial decision. For travellers comparing fares, the immediate development is regulatory scrutiny of a potential future change rather than a change to flights already booked.
Sources & transparency
Competition Bureau Canada — October 28, 2026 report announcementOriginal CDN News coverage. Sources are linked for reference.
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