MONTREAL- Major North American carrier, Air Canada (AC) during its investor’s day presentation made significant announcements including new potential destinations such as Bengaluru (BLR), Riyadh (RUH), and many more.
The Canadian flag carrier has also made some major aspirational targets to achieve them before 2030.
Air Canada Global Expansion
As one of North America’s leading airlines, Air Canada is poised to capitalize on a wealth of international growth opportunities in the coming years. According to the company’s latest analysis, the carrier is projecting a remarkable revenue increase of approximately $30 billion by 2028, representing an annualized growth of 7-8%.
This ambitious outlook is supported by Air Canada’s plans to expand its global network and passenger capacity. The airline anticipates a 5-6% year-over-year increase in available seat miles (ASMs) through 2028, translating to a total capacity of around 130 billion ASMs.
Underpinning this expansion is Air Canada’s geographically diverse route network, which provides the flexibility to adapt to changing market conditions. The carrier’s capacity deployment is currently distributed across various regions, including 21% for domestic routes, 34% for the Atlantic, 16% for the Pacific, and 10% for the LATAM and Caribbean markets.
Beyond its Canadian hubs, Air Canada has established a strong presence across North America, with well-positioned international gateways.
The airline’s market-leading positions in cities like Vancouver, Montreal, Toronto, and Halifax demonstrate its ability to serve as a crucial transit point for passengers traveling to and from the United States, as well as destinations in Europe, Asia, and beyond.
Looking ahead, Air Canada is poised to expand its international footprint with the addition of a new destination in 2025 – Manila, Philippines.
Modern Fleet
Air Canada’s passenger fleet has undergone a strategic transformation to become more efficient and competitive.
The airline has retired older aircraft, such as the Boeing 767s and Embraer E190s, and modernized its fleet with new-generation aircraft like the Airbus A220s. This simplification and regionalization of the fleet has allowed Air Canada to optimize its operations, improve fuel efficiency, and create a strong foundation for future growth.
By 2028, the airline’s fleet is expected to consist of a mix of narrow-body and wide-body aircraft, including the Boeing 777, 787, Airbus A330, A321, and A220 models, providing the flexibility and capacity to meet evolving passenger demands.
Bengaluru and Many New Destinations
Air Canada is looking to operate flights to over 40 new destinations spread across six continents.
According to the data, the key source of new demographics in Canada between 2016 and 2021 has been immigration, with the largest share coming from India at a compound annual growth rate (CAGR) of 6%.
This influx of Indian immigrants, accounting for more than 25% of total immigration, highlights the growing importance of the India-Canada travel market.
Also Read: Will India Canada Air Travel Market Decline Amid Political Tensions? | Analysis
Other notable demographic shifts include immigration from the Philippines at a 4% CAGR and from Nigeria at a remarkable 14% CAGR. The diversification of Canada’s population, with contributions from Asia, Africa, and other regions, provides a strong foundation for air travel demand growth.
This is further evidenced by the doubling of passenger traffic between Canada and India over the 2016-2023 period, projected to reach an annual industry passenger volume of 2.2 million by 2023.
Air Canada in its potential destinations has showcased Bengaluru (BLR) as a potential destination. It is likely to serve this city from Montreal. The airline can serve this 8019 miles / 12905 kilometers long route with Boeing 777 and 787 fleet.
Air Canada currently serves Delhi and Mumbai from Toronto and Montreal hubs.
Stay tuned as we examine and go through the complete presentation. We will soon make more articles on A321XLR routes, fleet updates, financial performance, loyalty programs, and much more.
Feature Image by Clément Alloing | Flickr
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