Canada Daily Newsletter: Canada's Airline Market Consolidates, Raising Risk of Fares Hikes

Good morning mooers! Here are things you need to know about today's market:

●S&P/TSX 60 Index Standard Futures are trading at 1,317.60 ,up 0.29%.

●Average asking rent prices reach $2,193 in February, up 10.5% from 2023

●US Crude Oil, Gasoline Stocks Fall Week Over Week, EIA Reports

●Canada's Airline Market Consolidates, Raising Risk of Fares Hikes

●Stocks to watch: Parkland Co, TD Bank

●Earnings Results & Economic Events: Feb Housing Starts, Empire Company

Today, the Canadian dollar is trading at 74.25 cents US, a slight increase from Monday's rate of 74.17 cents US.

The S&P/TSX60 Index Standard Futures (SXF) are currently trading at 1,317.60, which is up 0.29% from the previous close.

According to a new report by Rentals.ca and Urbanation, the average asking price for a rental unit in Canada was $2,193 per month in February. This marks a 10.5% increase year-over-year, the fastest annual growth since September 2023. The average monthly cost of a one-bedroom unit in February was $1,920, up 12.9% from the same month in 2023, while the average asking price for a two-bedroom was $2,293, up 11.3% annually. Overall, asking rents in Canada have increased by a total of 21% from two years ago, just before the start of interest rate hikes by the Bank of Canada.

US crude oil inventories fell 1.5 million barrels to 447.0 million barrels week over week, the US Energy Information Administration reported Wednesday. US crude oil production also edged lower to 13.225 million barrels per day from 13.275 million b/d in the week ended March 8.

Crude imports to the US decreased to 6.438 million b/d from 6.682 million b/d, while exports from the country declined to 4.369 million b/d from 4.669 million b/d week over week. Total US gasoline stocks also dropped 5.6 million barrels to 234.1 million barrels in the week ended March 8.

After entertaining new entrants for several years, Canada's airline market is once again on the path to consolidation, raising the likelihood of higher fares and fewer flight options.

Since May, newer low-cost carriers Swoop and Lynx Air have disappeared from the skies and WestJet has scooped up Sunwing Airlines.

The latter two made up 37 per cent of seat capacity on direct flights to sun destinations and 72 per cent from Western Canada last year, according to an October report from the Competition Bureau. It said eliminating the rivalry between WestJet and Sunwing would likely suppress competition around the sale of vacation packages.

The ex-dividend date is March 21, 2024.

The dividend is slightly better than the Q4 2023 $0.34 per share.