Flair Airlines says it's offering flights for a loonie. Experts say it needs to get real
VP says deal is a way to give back to customers, expert calls strategy a 'loss leader'
Would you buy a plane ticket for a loonie? Flair Airlines hopes so.
The ultra low-cost carrier says it has launched a $1 base airfare deal for passengers flying back to Canada from sun destinations — but some experts are skeptical of whether the airline can sustain the promo.
Flair says the $1 airfares, currently reserved for northbound flights from Mexico, the U.S., Jamaica and the Dominican Republic, are now offered permanently on its website.
The airline is offering $1 flights back to Canada from airports in Cancun and Puerto Vallarta, Orlando and Las Vegas. The deal applies to flights from down south to airports in Calgary, Edmonton, Montreal, Saint John, Vancouver, Toronto and Kitchener-Waterloo, Ont., and London, Ont.
Eric Tanner, vice-president of revenue management and network planning at Flair, said the deal is a way to "give back to our customers."
"We're coming up on the beginning of our winter season where we stop flying quite as much domestically and we start flying quite a bit more internationally."
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He said those flights full when southbound, but that the aircraft are "quite empty" when they come back to Canada — so the deal incentivizes passengers to travel back up north. When the spring season begins, the deal will apply to southbound flights.
"These flights essentially have no opportunity cost. They are flying full south and empty north," he said. "And so even if we put four people onto that flight who otherwise wouldn't have taken it, that's great. We're happy about that."
Flair isn't the first carrier to try the $1 deal — Porter Airlines offered a similar promo for domestic flights in January 2023. And WestJet announced an UltraBasic Fare without carry-ons, seat selection and rewards points in June.
While the deal applies only to select flights, the airline said it plans to offer more routes throughout the year. The company stressed in a news release the deal is "not a one-time gimmick."
'It's a gimmick'
Others disagree.
"It's a gimmick," said Ian Lee, an associate professor of management at Carleton University's Sprott School of Business.
"This is essentially a loss leader. You see this in grocery stores and in retail. They're doing this to try to generate, drive business to the site and get people comfortable with flying on this airline.
"They won't be able to sustain it for very long because the operating cost per customer is significant," Lee added, saying the airline would need to be consistently putting customers in almost every seat for the move to be sustainable.
"That requires a relationship with the consumer. Air Canada has it, WestJet has it, Porter has it. These smaller discount airlines are trying to build consumer loyalty ... and it's a struggle in this industry."
Flair, one of the last ultra-low-cost airlines still operating in Canada, has significant debt. Court documents from earlier this year showed that it owed $67 million to the Canada Revenue Agency in import duties.
Four of its planes were repossessed in March 2023 after the company allegedly missed rent payments to a leasing manager, which amounted to millions of dollars.
The carrier announced on Wednesday it would be looking for investors to inject cash into the business to restructure its finances, helping to address its debt. It's also trying to grow its 20-plane fleet.
'The bill could be pretty expensive'
Some travellers at Toronto's Pearson International Airport were receptive to the Flair deal, while others said thanks, but no thanks.
"Make it to as many destinations as you can for a buck? I'm good with it. I'll certainly take advantage of that offer," said Max Kirsch.
"There's no such thing as a free lunch. But with that being said, a dollar for the flight, how much can they really boost your baggage fees?"
Others were less enthusiastic.
"I'd be very suspicious about a $1 fare myself," said John Kangur. His wife Ella-Mai called the deal too good to be true.
"Many of these cheap flights, there's baggage fees, there's check-in fees, there's this fee, there's this fee. There's restrictions on time travel when, where. So we go with the airlines that we're comfortable with," she said.
Flair acknowledged the base fare is only one component of the ticket's total cost. Fees for baggage and seat selection will still apply, regardless of the promo, as will other airport fees that are collected each time you travel.
"You need to buy tickets, you have to buy baggage, carry-on baggage, checked baggage. You have to pay money for your seat, pay money for all types of others ancillary services," said John Gradek, an aviation industry expert at McGill University.
Additional and optional charges are detailed on Flair's website.
The carrier charges between $29 and $89 plus tax for carry-on bags, with the fee depending on whether you add the bag online, at the airport or at the gate.
A 10-kilogram checked bag costs between $29 and $59 plus tax. A 23-kilogram checked bag costs between $49 and $79 plus tax, and that cost goes up for bags checked at the airport (and with each subsequent 23-kilogram bag that is checked).
Standard seat selection on a Flair flight costs between $15 and $25 plus tax, with other charges for seats at the front of the plane, seats with extra legroom and seats in the emergency exit row.
Plus, most airports in Canada charge an "airport improvement fee" that adds to the final cost of your trip. For example, Toronto Pearson's fee is $35 for originating passengers and $7 for connecting passengers.
"The bill could be pretty expensive," said Gradek. "So be careful in terms of what you actually are buying all-in if you buy that $1 fare."
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With files from Nisha Patel and Laura MacNaughton