Slashing the fees and taxes that account for roughly 40 percent of the difference between Canadian and U.S. air fares, would have a significant impact, but doing so looks unlikely given tight government budgets, the Conference Board of Canada report said.

“The fact that Canada’s largest airports are losing traffic to cross-border competitors matters because it undermines their role as national and international hubs,” David Stewart-Patterson, the Conference Board’s vice president of public policy, said in a statement.

“When a Canadian hub airport loses passengers, it can lead to reduced flight frequencies, higher travel costs and poorer service for all Canadians.”

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