SOMBA K'E/YELLOWKNIFE - Nearly three months since WestJet began flying to Yellowknife, flight prices to and from smaller communities haven't yet been affected by the competition, Northern carriers say.

But in the future those prices could increase to compensate for lowered fares elsewhere in the territory.

Both Canadian North and First Air have committed to matching their fares for the Yellowknife-to-Edmonton route with WestJet's prices since the Calgary-based airline started offering seasonal service on that route May 4. WestJet sells one-way tickets from Yellowknife to Edmonton as low as $99, while the lowest prices for the same flight on both Canadian North and First Air were about $400 as of Friday morning.

Kelly Kaylo, vice president for Canadian North's passenger product and sales, said lowering fares to compete with WestJet won't cause Canadian North to hike prices for community flights, such as those from Inuvik and Norman Wells.

"At this point in time there's been no change really in terms of our strategy in how we are competing against the two major carriers in the Yellowknife market and that is, you know, we're matching the airfares and continuing to provide a fairly high level of service," she said.

"In fact, we had our typical summer seat sale that was launched into the market some months ago for sale in the summer, and that seat sale extends to all of our communities."

On May 1, First Air implemented a five per cent increase on all fares over last year's rates. Christopher Ferris, vice president of marketing and sales for First Air, said decreasing fuel prices in international markets aren't saving the airline any money, but First Air is also offering its recently introduced summer seat sales. Currently, a flight from Inuvik to Yellowknife costs the same on both airlines: $519.

Ferris said while First Air has not increased fares for community flights to make up the cost of matching WestJet's prices, the airline may consider doing so.

"It could down the road have an impact on the fares beyond the Northern hubs of Yellowknife, Iqaluit and Rankin, but at this time it's a situation that we're monitoring and keeping an eye on the cost and the revenue," he said. "But as the price decreases on those high volume routes like Edmonton-Yellowknife, because of competition, it means that that route is no longer contributing it's fair share of revenue to our costs that we incur in a place like Yellowknife. So, potentially yes, down the road it could have an impact on prices in the North within the smaller communities, but currently we haven't taken any pricing action."

WestJet announced earlier this month that it would offer year-round service to Yellowknife from Edmonton.