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Air Canada targets global growth with new routes, while U.S. travel demand still sags
Chief operating officer Mark Galardo says the move is meant to make Air Canada a "true global" carrier and draw more higher-margin international travelers.
Air Canada announced seven new overseas routes starting next summer, including service to Guangzhou, Oslo, and Dubrovnik, cementing its status as the second-largest North American carrier by overseas destinations served.
Chief Operating Officer Mark Galardo described the expansion as a push to become a "true global" carrier, emphasizing reliance on higher-margin international customers rather than domestic travel demand.
Canada serves as an ideal layover hub for travel between the Americas and Europe, positioning the airline to capture international transit traffic as a key revenue source.
Expansion efforts rely on new long-range Airbus A321 narrow-body jets and Boeing 787 wide-bodies, though major delivery delays have hampered the rollout of these aircraft.
Amid higher jet fuel costs tied to the Iran war and a prolonged plunge in Canadian demand for U.S. travel, the airline faces a challenging commercial backdrop for international growth.