Lower oil prices and the weaker Canadian dollar boosted the Canadian airline industry’s bottom line to record levels in 2015, according to The Conference Board of Canada’s latest report.

Even though industry profitability is expected to subside from the record highs starting in 2016, pre-tax profits will remain very healthy over the next four years, says the board’s new Canadian Industrial Outlook: Canada’s Air Transportation Industry.

“The two biggest economic stories of 2015 – low oil prices and a weaker loonie – have wreaked havoc on Canada’s economy, but have been a net positive for Canadian airline transportation,” says Todd Crawford, senior economist at the Conference Board.

“However, it’s not all blue skies. Canadian air carriers are also contending with a weak domestic economy, which should restrain consumer spending and business travel. At the same time, new competition, particularly in the ultra-low-cost carrier segment, is heating up.

“Despite the low loonie, the number of US visitors to Canada did not grow as fast as expected last year. However, Canada’s accommodation industry should see a better year in 2016, as Americans are expected to react more favourably to a lower dollar.”