by Jen Mallia
Last updated: 12:00 PM ET, Fri June 19, 2026
Earlier this week, Air Canada announced it was introducing a new commission structure for travel advisors, cutting the amount advisors will earn on bookings. Reaction from the already pressured industry was marked by disappointment, with The Association of Canadian Travel Agencies (ACTA) reporting that many agencies have described the changes as "an unexpected and significant blow to their businesses."
The airline stated that the change in the commission plan is “part of a longer-term strategy that we accelerated due to the conditions we find ourselves in in 2026.” The conditions they cite include overall higher costs, rising market uncertainty, and the impact of new technology, including AI, which promises to reshape the whole travel ecosystem. “We are under high cost-pressures,” reads the statement.
ACTA responded to the cuts, urging the airline to reconsider, indicating it believes the change will have “serious consequences” for many travel businesses across Canada. ACTA also criticized the short transition period between the announcement and the July 1, 2026 implementation date, stating that many businesses have already made business, staffing and investment decisions based on existing arrangements.
Representatives from ACTA have met twice with Air Canada senior leadership to relay their concerns, as well as conveying to the federal government the problem with the new commission structure, given the “implications for consumers, entrepreneurs, small businesses and the broader travel economy.”
Air Canada states it is mindful of the pressures its partners in the travel industry are under. “We feel these same pressures.”
The airline stated that it is confident that for agencies under an agreement with Air Canada, it offers a compelling incentive program, noting its long record of working with agency partners in difficult times, such as during COVID, and new programs such as AC&Me “to find new ways to recognize their contributions.”
“We will continue to work with and find innovative ways to support and compensate our agency partners,” the statement concludes.
For its part, ACTA says it supports a strong, competitive and financially sustainable airline sector in Canada. “We believe the long-term success of the travel ecosystem depends on a sustainable partnership that recognizes the work travel agencies and travel advisors perform and fairly compensates them for the value they create.”
“We would encourage airlines to view travel agencies and travel advisors as an extension of their sales and customer service network rather than solely through the lens of distribution costs,” says Suzanne Acton-Gervais, ACTA president. “Travel agencies generate revenue, expand market reach, support customers and play an important role in the overall traveller experience.”
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