Air Canada, PAL Airlines Plan to Expand Partnership Through 2032

Image: Air Canada Express Dash 8-400 (Photo Credit: Air Canada)
Image: Air Canada Express Dash 8-400 (Photo Credit: Air Canada)
Natasha Lair
by Natasha Lair
Last updated: 8:10 AM ET, Fri January 9, 2026

Air Canada and PAL Airlines have announced their intent to expand the commercial agreement under which PAL operates regional flights for Air Canada Express.

The existing agreement would be extended by four years, through 2032, and the number of PAL aircraft operating under the partnership is expected to increase by five, bringing the total to 11.

“Air Canada is committed to regional connectivity. Our proposed agreement with PAL Airlines will enable us to protect existing services from Montréal to destinations in Québec and New Brunswick and support the overall growth of our regional network," said Mark Galardo, Executive Vice President and Chief Commercial Officer, and President of Cargo at Air Canada.

"Since PAL Airlines began operating for Air Canada Express in 2023, it has proven to be a strong partner, offering our customers in eastern Canada reliability, excellent customer service and a greater choice of flying options,” 

The two airlines have signed a letter of intent, subject to final negotiations, to expand the existing arrangement. The plan would add five additional Dash 8-400 aircraft to the fleet operating on regional routes in Eastern Canada and Quebec.

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