Originally Posted by
CZBB
The C$ going from 1.37 to 1.31 means the Canadian dollar has gone UP in value (or the US$ down), as it takes fewer of them to buy a US$
When the Canadian dollar is at 1.31, it means I only need to spend C$131 (vs 137) to get US$100.
The built-in advantage to a carrier flying a purely US domestic route, vs an international route, as there's about $45 in US taxes to enter the USA on a flight.
Due to the (relatively) stable global oil price (although a bigger conflict Iran may affect that) the Canadian dollar hasn't changed much against the US in 5-6 years. When oil goes up in price, the CAD will follow, and when oil was close to $100/bbl, the CAD was close to par with the US Dollar.
I see your point. However, won’t the exchange rate need to be closer to parity for Bellingham flights to be both profitable for Alaska and priced attractively enough so enough Canadians are enticed to drive there?
If the exchange rates go back to 2010ish levels, Alaska would likely be able to charge much more (in USD) for these flights while still offering a larger value proposition for Canadian travelers.