Canada’s Competition Bureau has concluded that a proposed expansion of cooperation between Air Canada and United Airlines would likely harm competition on ten routes between Canada and the United States.
The Bureau delivered its report to the federal transport minister under the Canada Transportation Act. It found that deeper coordination could lead to higher fares and millions of dollars in annual consumer harm. On five of the affected routes, the two airlines currently account for all nonstop traffic, while entry barriers make a prompt competitive response unlikely.
The report is advisory rather than a final prohibition. The transport minister must decide whether to authorise the arrangement, taking account of the Bureau’s competition analysis and other public-interest considerations permitted by the statute.
The proposed arrangement would allow broader coordination between the carriers, including on schedules and capacity. The Bureau’s concern is that the parties would have less incentive to compete where they are each other’s closest or only nonstop rival. Its findings concern the proposed expansion, not a determination that the airlines have already breached competition law.
The Bureau made its conclusion public on 28 October 2026. Its official report sets out the affected markets, legal framework and recommendation to the minister.
