I agree with the lack of competition as a major factor (Canada is highly protectionist when it comes to the airline markets, so there's an infamous "cross-border penalty" that once left taking the Acela out of Washington and connecting to the Adirondack cheaper than flying). However, I get a feeling there's another factor which hasn't been mentioned: The Canadian dollar has generally been a lot weaker than it has been in the last 4-6 years, and the big swing in currency rates from before seems to have distorted prices in Canada on a long-term basis (since Canadian pay is in CAD). It's worth noting that VIA is often not cheap, either, almost regardless of where you are in the country.