Of the four tax increases in Monday’s provincial budget, one that stands out is the hike to the surcharge on aviation fuel.
Currently at 2.7 cents per litre, the jet fuel tax will be raised to 6.7 cents per litre over the next four years.
A spokesperson for Air Canada has called the move “unbelievably punitive” – but travel industry insiders say it’s the passengers who will likely be the ones paying the punishment.
“You’re going to see that increase in your airfare or in your tax,” says Sandy Willett, manager of Goliger’s Travel Plus in Waterloo.
“There’s only one way to pass it on, and that’s to the consumer.”
It’s estimated that three million Ontarians cross the border every year for cheaper flights.
Jasen Frederiksen is one of them.
The Cambridge resident says he routinely compares prices at Detroit, Buffalo and Toronto’s airports, and then flies out of whichever one gives him the best deal – and very rarely does that involve staying in the country.
“I have no loyalty to Pearson,” he says.
Frederiksen admits that there are some advantages to flying from Toronto. For one, the bigger airport means more flights and fewer scheduling conflicts.
“Buffalo, being smaller, you don’t get such a large range of flight times,” he says.
While Buffalo and Detroit’s airports may be cheaper for U.S. domestic flights, Willett says Toronto is often the best option for those flying to Europe or the Caribbean.
