Despite Canada’s strong airline profitability, Canadian pilots earn significantly less than their U.S. counterparts, and only slightly more than Australian pilots. While Canadian airlines, represented by Air Canada and WestJet, maintain competitive Operating Margins, pilot salaries lag behind those in the U.S., where profitability and union influence have driven compensation to much higher levels.

Profitability vs. Pay Gap –Operating Margin (2015-2019) vs. Salaries

Source: : t6ix Economics calculations, Company financial disclosures, Morningstar Inc.

Salary data from: PayScale, Indeed Inc., Holmes Institute Aviation (Australia), PCC Aviation Services Inc.

Key Highlights

• Profitability vs. Pay in Canada: Canadian airlines, such as Air Canada, report strong Operating Margins, averaging 8.9% from 2015-2019, yet the average salary for Canadian pilots, around $117,846 USD (based on Salary data), remains much lower than U.S. levels, where average pilot salaries at United Airlines reach $259,504 USD with a comparable 11.5% Operating Margin (Chart 1).

• WestJet’s 2023 Contract Success: WestJet’s 2023 negotiations resulted in an average salary of $152,180 USD for its pilots—one of the highest among Canadian airlines—showing that competitive pay is achievable even with moderate profitability.

• U.S. Leads in Compensation: U.S. airlines, with Operating Margins averaging 15.5% for Delta and 11.5% for United, set the benchmark in pilot compensation. Salaries at Delta and United, at $177,522 USD and $259,504 USD respectively, reflect strong union influence and a larger market scale.

• Australian Comparison: In Australia, Qantas maintains an Operating Margin of 6.2% with pilot salaries averaging $79,805 USD, highlighting regional differences in pay structures that place Canadian compensation between U.S. and Australian levels.