Yes, candles can be harmful and it's just not worth the risk. However, there are candles that you can use in the bathroom like soy or beeswax candles. It's not just the smell but the risk of fire or your bird getting burned.
http://www.parrotparrot.com/birdhealth/ ... tm#candlesIs it the smell you are after because you can simmer cinnamon sticks, apple peel in some water on low on the stove if you just want a nice smell in the house.
I don't do any of that stuff because I'd rather be safe than sorry. A bird's respiratory system is a very delicate thing.
Bev
There is no creature on this planet that will help you find your inner child as quickly as a parrot.