Canadian airlines have long worried about losing business as millions of travellers flock to U.S. border airports in search of cheap fares.

But now a Toronto-based airline is joining the exodus by launching seasonal service to sun destinations from Buffalo.

Sunwing Airlines is offering weekly service on Saturdays, beginning in January to Cancun, Mexico, and in February, to Punta Cana in the Dominican Republic, until May out of Buffalo Niagara International Airport.

The airline expects the vast majority of the seats will be filled with passengers who buy full vacation packages that include hotel stays. It isn’t the first Canadian airline to try this. Air Transat briefly offered service in 2001 to Dominican Republic, but then abandoned the idea.

Passengers who decide to fly out of Buffalo would have weigh the exchange rate of a weaker loonie (which fell below 90 cents U.S.) Friday, plus the time and money to drive to Buffalo and park at the U.S. airport for a week. Add the risk of long waits at the border, and potential bad weather in a city famous for nasty lake-effect snowstorms.

“We’re a proudly Canadian company, and we continue to add flights to the sun each year from many Canadian cities,” said Andrew Dawson, chief operating officer, in an email. “However, our customers want the best value for their vacation spend.

“It is more cost effective in several aspects, such as not having to pass on the new Ontario aviation fuel taxes from the recent budget,” he added.

Ontario is raising the tax on aviation fuel by four cents over the next four years. On Sept. 1, the tax rose by 1 cent to 3.7 cents a litre.

The tax rate had not changed since 1992. It generated an estimated $65 million last year. When fully implemented in 2017, it will bring in $130 million.

Marc-André O’Rourke, director of the National Airlines Council of Canada, which represents the country’s major airlines, says his group is still hoping to change minds at Queen’s Park, noting the tax hikes will hurt the broader economy.

“I don’t know if they truly understand the consequences of these decisions,” he said. “Given the margins in the industry, there is very little room, if any, to absorb this increase.”

Canadians have become big business for U.S. border airports, which have lower airport rents, fees and taxes. The Buffalo airport says an estimated 2 million Canadians used its facility last year.

“We’re all good to go. We’re very excited about Sunwing’s service,” said Doug Hartmayer, an airport spokesman. “There is pent-up demand for these international flights. It won’t just be Canadians, but Americans as well.”

That’s because the U.S. airlines that serve the Buffalo airport do not offer direct non-stop service to sun destinations like Cancun or Punta Cana.

A check of vacation websites found a round-trip Sunwing trip from Buffalo to Cancun, departing Jan. 31 and returning Feb. 7, advertised at $419 (U.S.) plus $118 (U.S.) in taxes and fees, for a total of $537 (U.S.).

A similar Sunwing trip, but from Toronto to Cancun, departing and returning on the same days, has a base fare of $445 plus $392 in taxes and fees for a total of $837.

On a trip during March Break, a Sunwing flight to Punta Cana, departing from Buffalo on March 14, returning a week later, is listed at $629 (U.S.) plus $147 (U.S.) in taxes and fees, for a total of $776 (U.S.).

A similar flight, departing on the same days, but from Toronto, is listed at $1,105 plus $425 in taxes, fees and charge, for a total of $1,530.

Consumers can pay in Canadian dollars if they buy tickets through a travel agent or over the phone.

“It’s very smart. Sunwing is going to where the market is,” said Robert Kokonis, president of the consulting firm AirTrav Inc.

“I think Sunwing thinks if you can’t beat them, you join them,” he said, adding he doubts it will dilute Sunwing’s traffic out of Toronto’s Pearson airport, which is a strong market.

Similarly, tour operator Sunquest Vacations began offering packages out of U.S. airports last winter.

Loading... Loading... Loading... Loading... Loading... Loading...

“It has been nice and steady. It continues to grow, and Sunwing has jumped into it now,” said Brad Miron, vice-president of marketing and business development at Sunquest.

He estimates that on a packaged vacation, a U.S. departure can mean savings between $200 and $300 per passenger, which is substantial for a family of four.

Miron said the U.S. offerings aren’t hurting the company’s business in Canada, noting Canadians are travelling in record numbers, and taking more trips.

Advanced bookings are up significantly, he said, giving credit to Mother Nature. Canadians still remember last year’s harsh winter and this summer’s cool weather. “They need an escape plan,” he said.