I have applied for a passport, and even with expediting it, it will not be ready on time. I am supossed to fly from toronto to alberta in the 2nd week of september. Since I am able to get into the country with only a valid license and birth certificate, once i am in, would i be able to fly on a major airline within the country, not needing a passport?

You do not need a passport to fly within the country. You will need government identification of some sort to get on the plane, but it does not have to be a passport.