My understanding is that the mainland to Vancouver Island routes are quite profitable, but almost every other BC Ferries route posts a loss annually. BC Ferrie

My understanding is that the mainland to Vancouver Island routes are quite profitable, but almost every other BC Ferries route posts a loss annually. BC Ferries is mandated to provide the loss-making routes for provincial accessibility reasons (and they get a ~$200 million annual government subsidy to do so). The routes to the island are probably priced the way they are partially to cover the other losses, but also I think because the demand allows it. Those ferries during non-COVID times, although quite large, are often filled close to capacity; anything lower would certainly stimulate travel and lead to overcapacity.