Here’s my link to Thomas’s post on Canadian flights.

Finally someone writes about this!
I 100% agree that Canadian air travel is ridiculously overpriced. Whenever we can, my family flies from Bellingham.
It’s all those extra fees that add up (Like those dozens of $1.50 UBC student fees). Ex. Airport improvement fees – really now, how much can airports keep “improving” by? Navigation fees – there’s GPS now so I’d guess that money is going elsewhere. The fees don’t make any sense to be higher in Canada if the same services are provided like any American or European flight.
It comes down to Canadian air travel being somewhat a monopoly, since Air Canada is the dominant driving, well flying force. Air Canada knows that people will pay whatever. Flights from Toronto to Vancouver are inelastic.
I would link this to my perception that tourism is not as strong in Canada due to flight costs for travellers. Trip to Vancouver or LA for half the price? No more lassiez faire attitude, the government needs to intervene. Flights in Canada have to cheapen up if they want to be a strong competitor, both in travel and tourism.