Air Canada is preparing for a challenging 2026, facing higher labor costs and slower U.S. leisure travel, while planning to introduce a record 35 new aircraft into its fleet, company executives said.
The airline reported a lower third-quarter profit after cabin crew strikes forced the cancellation of thousands of flights and reduced demand for travel to and from the U.S. Shares fell 2.9% in early trading following the announcement.
Capacity is expected to rise modestly by 0.75% in available seat miles for 2025. While cross-border leisure travel has slowed amid tariffs on Canadian imports, demand for premium services and corporate travel remains strong, with executives predicting double-digit growth in corporate revenue for the final quarter of 2025.
CEO Mike Rousseau highlighted the fleet expansion as a major step for Air Canada. “We expect to receive 35 new aircraft in 2026, the most in a single year,” he said. The addition of new Boeing 787 wide-body aircraft will enhance transatlantic and Asia routes, supporting Canada’s efforts to diversify trade away from the U.S.
The airline is also transitioning its leisure carrier, Rouge, to operate exclusively with Boeing 737 aircraft by the end of 2026, modernizing the fleet and improving operational efficiency.
With these changes, Air Canada aims to strengthen its global presence, expand corporate and premium travel services, and position itself for growth despite rising costs and ongoing U.S. market challenges.