“New Frontiers” was the title of Air Canada’s Investor Day presentation this week. In a wide-ranging look into the future of this fast-growing global carrier, one of the things that stood out is the importance of an increasingly diversified fleet in reaching ambitious future financial targets.
Fleet is at the core of AC’s strategy, and the airline is putting the focus on four aircraft types
· The Boeing 787-10 will begin joining the AC fleet in the last quarter of 2025, with 18 scheduled to arrive through Q1 2027. Carrying more than 330 customers, the largest model of the Dreamliner family will be used to replace older, less efficient wide-body aircraft.
· The AirbusA321XLR model burns 30% less fuel than existing A321neos and will bring new opportunities in “long and thin” markets.
· Air Canada says the Airbus A220 is the right aircraft for 6th freedom growth and improved regional market performance. Plans for this model include a new base at YVR by 2026.
· All of Air Canada’s Boeing 737 MAX aircraft will move to the Rouge brand by 2028, including the establishment of a new base for the plane in Vancouver. AC says the move will enhance Rouge’s leisure competitiveness, offering lower-cost operations and optimizing the product through consistent seating. This “more capable” aircraft model will also enable new destinations for Rouge.
An Air Canada A321XLR. (Photo Credit: Air Canada)
AC says key customer impacts of the fleet plan include the ability to access more destinations, provide better service to existing destinations and improve the customer inflight experience.
Premium revenues are key to AC’s financial goals. By 2028, Air Canada will see 24% more business class ASMs (available seat miles), 20% more premium economy seats and a 136% increase in preferred seats. The new 787-10s, for example, offer 30% more business class seats than the current A330 model.
Air Canada says business travel continues its long post-COVID rebound and it promises to embrace technology for corporates, including implementing a new self-serve travel buyer portal by 2026.
The premium strategy also extends to a three-year improvement and expansion plan for Air Canada’s Maple Leaf Lounges. The airline says it will add nine new lounges, renovate eight others, and increase overall lounge capacity by 43%.
An Air Canada Airbus A220. (Photo Credit: Air Canada)
Air Canada says it is well-positioned to achieve the ambitious goal of a 36% increase in its 2028 operating revenue from today, riding a strong wave of leisure travel demand, as consumers increasingly choose experiences over goods.
Core financial drivers for Air Canada include its expanding global network, its global, trans-Atlantic and trans-Pacific hubs in YYZ, YUL and YVR respectively, a “fit-for-purpose” fleet, strong airline partnerships, the popular Aeroplan loyalty program and a powerful vacation offering through Air Canada Vacations.
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