Air Canada accelerates its global expansion with new flights, record results and fleet modernization

Air Canada announced a series of strategic advancements that solidify its position as one of the world's leading airlines, combining a significant expansion of its network in Mexico, strong annual financial results, and a key investment in state-of-the-art aircraft to boost its international growth
over the next decade.

As part of its global business and connectivity strategy, the company will increase its capacity to Mexican destinations by 18% in the Northern Hemisphere summer of 2026 compared to the same period the previous year, highlighting the launch of a new direct route between Montreal and Guadalajara starting in June 2026. This is in addition to increased frequencies to high-demand destinations, including additional flights between Montreal and Cancun, Toronto and Monterrey, Vancouver and Mexico City, and Puerto Vallarta, strengthening tourism, trade, and logistics ties between the two countries. During the Northern Hemisphere winter peak season, the airline will operate up to 30 direct flights from eight Canadian cities to 11 Mexican destinations, while for the Northern Hemisphere summer of 2026 it projects up to 10 daily flights from its main hubs, equivalent to approximately 1,700 seats per day per leg.

These announcements come against a backdrop of historic financial performance: the company posted annual revenues of $22.4 billion in 2025, including a record fourth quarter of $5.8 billion, annual operating income of $918 million, and adjusted EBITDA of $3.1 billion. These results reflect the strength of its business strategy, customer loyalty, and the resilience of its business model in the face of macroeconomic and operational challenges. The airline also generated $3.7 billion in operating cash flow and was recognized as North America’s Best Airline at the 2025 Skytrax Awards, in addition to reporting year-over-year improvements in operational performance and customer satisfaction.

By 2026, Air Canada expects to continue its growth with a capacity increase of between 3.5% and 5.5%, an estimated adjusted EBITDA of between $3.35 billion and $3.75 billion, and a projected free cash flow of between $400 million and $800 million.

In parallel, the company is advancing its fleet modernization program with the confirmation of an order for eight Airbus A350-1000 aircraft from the European manufacturer Airbus, with an option to acquire eight additional aircraft and deliveries expected to begin in 2030. These wide-body aircraft will offer up to 25% less fuel consumption compared to previous generations, a greater operating range of close to 9,000 nautical miles, quieter cabins, and comfort improvements designed to reduce passenger fatigue, in addition to incorporating new standards of connectivity and entertainment.

This investment complements the gradual arrival of other modern models that will enhance the fleet's efficiency, sustainability, and flexibility. With these initiatives, the company reaffirms its long-term vision focused on expanding its international network, optimizing its cost structure, strengthening the customer experience, and generating sustained value for passengers, employees, and investors, with financial targets aiming for revenues of approximately US$30 billion by 2028 and EBITDA margins of at least 17%.

Source: Air Canada.