Air Canada expects revenue in September and October to reach record levels as premium travelers increasingly shift their international trips away from the summer peak, a senior executive said.
The airline has seen stronger demand from business-class and high-value leisure travelers heading to destinations including Italy, Spain, France, the Mediterranean and Japan during the shoulder seasons.
“We anticipate that September and October will probably be the strongest September and October from a revenue perspective that the company’s ever had,” Air Canada Chief Commercial Officer Mark Galardo said in an interview on Thursday.
Galardo said demand for business-class travel to Europe and Japan had grown significantly, with many premium travelers choosing to avoid the busiest and hottest months of summer.
Major North American airlines have increasingly focused on premium passengers, corporate customers and loyalty-program members, whose travel demand tends to prove more resilient when fares increase.
The trend is also being observed by U.S. carriers including Delta Air Lines and United Airlines, which have reported stronger autumn demand, particularly for high-value European routes.
Extreme summer weather has further encouraged some travelers to reconsider peak-season trips. Large parts of Europe have experienced record heat, drought and wildfires, while limited air-conditioning in some destinations has added to concerns about summer travel. Japan has also recorded temperatures above 40 degrees Celsius (104 degrees Fahrenheit).
Galardo said the shift toward spring and autumn travel among premium customers began two or three years ago but has accelerated, with some of the trend now extending into November.
However, the pattern has not been as pronounced among budget-conscious travelers.
“That shift to the fall season is really a story of premium,” Galardo said.
The changing demand pattern has already prompted Air Canada to expand its European leisure network, including adding flights to destinations such as Sicily and Mallorca. Galardo said further additions are expected as the airline receives new aircraft next year.
“We’re expecting that the fall and spring seasons will be significant contributors to these new routes,” he said.
The shift is also influencing Air Canada’s aircraft maintenance planning. The airline is developing a strategy that would allow it to better manage seasonal demand, including scheduling some aircraft for maintenance during the summer so they can return to service ahead of the stronger September period.
Source: Reuters