Air Canada is continuing to strengthen its sixth-freedom strategy, a key driver behind the airline’s recent expansion into South America.

While geopolitical tensions dampened travel demand between Canada and the United States last year, the carrier saw solid momentum in its sixth-freedom markets. During a Feb. 13 earnings call, Chief Commercial Officer and President, Cargo, Mark Galardo said that enhancements to the airline’s schedule improved connectivity and helped lift sixth-freedom revenues by 10% in 2025 compared with 2024, reaching an all-time high.

To counter weaker U.S. transborder demand, Air Canada has been redirecting growth toward Latin America and the Caribbean. In mid-2025, the airline announced plans to increase winter seat capacity to the region by 16% year-over-year.

It has since confirmed the return of its Toronto–Quito route beginning in December 2026, after the service was suspended in March 2020. Flights to Lima and Rio de Janeiro will also resume earlier than in the previous winter season, advancing the restart by up to six weeks.

Galardo described Latin America and the Caribbean as a vast and diverse marketplace. He stressed that expansion into South America is not simply a shift away from U.S. flying. Instead, the strategy capitalizes on Canada’s geographic position to channel traffic between Europe and Latin America through the airline’s hubs.

Some transborder capacity has also been redeployed to the Caribbean, where performance has been encouraging. Galardo noted that load factors and yields have been positive across nearly all destinations in the region, with additional seats being absorbed effectively.

In 2025, Air Canada’s U.S. transborder revenue declined 10.4% year-over-year, reflecting a 9.6% reduction in capacity. Passenger traffic fell 12%, though yields improved by 1.9%. According to Galardo, the airline expects similar market conditions on these routes to continue for now.

Domestically, Air Canada plans roughly 5% capacity growth for the spring and summer seasons. However, demand trends remain strongest at its core hubs—Montreal, Toronto and Vancouver—where the balance between supply and demand is favorable. Competitive pressures are more evident in smaller Canadian markets, though the airline’s exposure there is limited.

On long-haul routes, corporate demand across the North Atlantic has been particularly strong. Galardo reported nearly a 30% increase in corporate travel to Europe and the Pacific, partly reflecting Canada’s efforts to diversify trade partnerships and global business ties.

The airline expects to receive 35 aircraft in 2026. Chief Financial Officer John Di Bert cautioned that capacity growth will be somewhat moderated because many aircraft deliveries are scheduled for the latter part of the year. Additional constraints include the transfer of Boeing 737 MAX aircraft to Rouge and the retirement of older jets.

Air Canada’s first Airbus A321XLR is due to arrive early this year. The aircraft will initially operate seasonal service between Montreal and Palma de Mallorca, and will also be deployed on year-round Montreal–Toulouse and seasonal Montreal–Edinburgh routes. Galardo added that the A321XLR will play a broader role within North America, with plans to introduce a consistent year-round product on select routes to enhance the airline’s premium offering.

The carrier has also ordered eight Airbus A350-1000 aircraft, with options for eight more. Di Bert said the new jets will replace the airline’s oldest Airbus A330-300s. According to fleet data, Air Canada currently operates 18 A330-300s, with two additional aircraft inactive.

For the full year 2025, Air Canada reported net income of C$644 million (US$474 million), down from C$1.7 billion a year earlier. Operating revenue rose slightly to C$22.3 billion, while expenses increased to C$21.4 billion. In the fourth quarter, the airline posted net income of C$296 million, reversing a C$644 million loss recorded in the same period of 2024. Quarterly revenue climbed to C$5.8 billion, and expenses declined to C$5.4 billion.

Qatar Airways has cautioned passengers that refund processing times may be extended due to ongoing operational pressures, while emphasizing that teams are actively working to handle requests as efficiently as possible.

The airline confirmed that travelers holding confirmed bookings with departure dates between February 28 and April 30, 2026, can opt either to request a full refund or modify their travel dates without penalty.

According to the carrier, refunds returned to the original method of payment could take as long as 28 working days to complete. Passengers are advised to monitor their email for updates after submitting a request, as this will provide the latest status of their application.

Qatar Airways noted that reimbursement amounts will reflect the unused portion of the ticket. Any additional services purchased, such as seat selection, will be processed and refunded separately.

Customers looking for further information or support with their bookings are encouraged to consult the airline’s official travel updates portal for the most recent guidance.

Source: Zawya

India is set to abolish temporary limits on domestic airfares from Monday, according to a government directive reviewed by Reuters, as the aviation sector shows signs of recovery and carriers face mounting cost pressures.

The fare restrictions were introduced in December after widespread flight cancellations by leading airline IndiGo led to a spike in ticket prices across the market. The government intervened to stabilise fares during a period of reduced capacity.

In its latest order, the civil aviation ministry said operating conditions have improved, pointing to restored flight capacity and a return to more stable operations. The directive, dated Friday and examined by Reuters on Saturday, has not been officially released. Officials from the ministry did not respond to requests for comment.

Airlines had called for the removal of the caps, saying the controls were contributing to substantial revenue losses while operating expenses continued to rise. Higher jet fuel prices, partly driven by the conflict involving Iran, have added to the financial strain.

Although airlines have not disclosed specific loss figures, analysts at HSBC estimate that a $1 per barrel increase in fuel prices could raise IndiGo’s annual fuel costs by roughly 3 billion rupees.

Under the temporary rules, fares for flights up to 500 kilometres were capped at 7,500 rupees ($80.07), while routes between 1,000 and 1,500 kilometres—including New Delhi to Mumbai—had a maximum fare of 15,000 rupees.

Despite lifting the caps, the government has directed airlines to keep ticket prices fair and transparent, ensuring they reflect market conditions without harming passenger interests.

Source: Khaleej Times

Singapore Airlines (SIA) has announced plans to begin non-stop services between Singapore and Riyadh from June 2026, marking a significant step in its Middle East network expansion. The airline intends to operate the route four times a week using its Airbus A350-900 medium-haul aircraft.

The aircraft will be configured with 303 seats, including 40 in Business Class and 263 in Economy Class, offering passengers a two-cabin travel option.

Pending regulatory approval, flight SQ498 will depart Singapore at 18:20 local time on Tuesdays, Thursdays, Saturdays, and Sundays, arriving in Riyadh at 21:45. The return service, SQ499, is scheduled to leave Riyadh at 23:00 on the same days, landing in Singapore at 12:15 the following day.

From 25 October 2026, minor schedule adjustments will take effect. Departures from Singapore will shift to 17:40, arriving in Riyadh at 21:35, while return flights will depart Riyadh at 22:50 and arrive in Singapore at 11:50 the next day.

Lee Lik Hsin, Chief Commercial Officer of Singapore Airlines, said the move reflects Riyadh’s growing economic significance. He noted that the Saudi capital’s rapid development and strong business environment position it as a key destination in the region. He added that the new route could also enhance collaboration with partner airlines, providing customers with broader travel options across the Middle East.

Riyadh will become the second Saudi destination served by the SIA Group, complementing Scoot’s existing four-times weekly flights to Jeddah.

As the capital and financial hub of Saudi Arabia, Riyadh offers a mix of cultural and modern attractions. Visitors can explore historic landmarks such as Diriyah and Masmak Fortress, alongside museums, high-end hotels, and diverse retail and dining experiences.

Ticket sales for the new service will be introduced gradually through Singapore Airlines’ distribution channels, subject to final approvals.

Philippine Airlines has suspended all flights between Manila and the Gulf hubs of Dubai and Doha until April 30, leaving thousands of overseas Filipinos and other travellers rushing to adjust their plans.

The flag carrier’s decision, driven by heightened security risks and airspace uncertainties in parts of the Middle East, extends an earlier series of short-term cancellations and effectively wipes out PAL’s Dubai (PR 658/659) and Doha (PR 684/685) services for the rest of April.

For affected passengers, PAL is offering a range of options. Travellers can rebook to a later date once services resume, with the airline waiving rebooking fees in line with its current advisories. Those who no longer wish to push through with their trip may opt to convert the value of their ticket into a travel credit for future use, or request a refund subject to the fare conditions.

Passengers are urged to first check if their flight falls within the suspension period using PAL’s online manage booking facility or by contacting the carrier’s customer service channels. From there, they can decide whether to secure the earliest possible rebooked flight after April 30, bank their ticket value for a later trip, or cancel altogether.

Travel agents and community groups in the Gulf are also advising Filipino workers and residents to consider alternative routings on other airlines while PAL’s Middle East operations are on hold, especially for those with urgent travel needs such as contract changes, medical emergencies or planned vacations.

With the situation in the region still fluid, Philippine Airlines has encouraged passengers to monitor its official advisories regularly, noting that any further extensions, resumptions, or special flights will be announced through its website and social media channels.

Saudia announced an increase of 20 flights connecting Riyadh and Jeddah with the Red Sea destination during the Eid Al-Fitr holiday. Carried out in coordination with the Saudi Tourism Authority (STA) and the Red Sea destination, the move raises the total number of round-trip services on these routes to 44.

The expanded schedule is part of a broader partnership between Saudia and the STA designed to promote Saudi tourist sites and support the tourism sector’s development. Officials said the collaboration focuses on offering travelers more convenient flight options and enhancing the onboard experience.

The initiative aligns with Saudi Arabia’s wider tourism ambitions, which include a target to welcome 150 million visitors by 2030.