Flair Airlines, an ultra low-cost carrier, has launched a headline-grabbing promotion: $1 base airfares for flights back to Canada from sun-soaked destinations. However, while the offer sounds enticing, industry experts are casting doubt on its sustainability and long-term viability.
The airline’s new promotion applies to flights returning from popular vacation spots in Mexico, the U.S., Jamaica, and the Dominican Republic, with passengers landing in cities like Calgary, Edmonton, Toronto, Vancouver, and more. The $1 fare, which is now a permanent fixture on Flair’s website, is part of the airline’s strategy to fill seats on planes that are otherwise returning nearly empty to Canada during the winter travel season.
“We’re excited to offer this deal as a way to give back to our customers,” said Eric Tanner, Flair Airlines’ vice-president of revenue management and network planning. He explained that while flights to sunny destinations are usually full, return flights often have plenty of empty seats. The promotion aims to incentivize travelers to book these otherwise vacant seats.
Yet, not everyone is convinced this strategy will work. Ian Lee, an associate professor of management at Carleton University’s Sprott School of Business, argues that the $1 fare is more of a marketing gimmick than a sustainable business practice. “This is essentially a loss leader,” Lee said, comparing the promotion to tactics used in grocery stores to drive customer traffic. “Flair won’t be able to sustain it for long because the operating cost per customer is significant.”
Flair Airlines has faced financial challenges in recent years, including a significant debt load and issues with aircraft leasing. Earlier this year, the airline revealed it owed $67 million to the Canada Revenue Agency in import duties. The company also had four of its planes repossessed in March 2023 after allegedly missing rent payments.
Despite these challenges, Flair is looking to expand its 20-plane fleet and has announced plans to seek investors to inject much-needed cash into the business.
Experts like John Gradek, an aviation industry specialist at McGill University, also warn that the true cost of these $1 flights might be higher than passengers expect. While the base fare is low, additional charges for baggage, seat selection, and other services can quickly add up. “The bill could be pretty expensive,” Gradek cautioned, advising travelers to be mindful of the all-in costs before booking.
Flair Airlines acknowledges that fees for extras like baggage and seat selection still apply, as do standard airport fees, which vary by location. For example, Toronto Pearson charges a $35 “airport improvement fee” for originating passengers, which can significantly increase the final cost of a trip.
While Flair’s $1 flight offer has certainly caught the public’s attention, whether it can deliver on its promise or if it’s simply a fleeting marketing tactic remains to be seen.