MONTREAL- During its investor day presentation, Air Canada (AC) announced additional destinations including Bengaluru (BLR), Riyadh (RUH), and more.
The Canadian flag carrier has also set some ambitious goals for itself that it hopes to reach by 2030.
Air Canada Global Expansion
As one of North America’s major airlines, Air Canada is well positioned to capitalize on a plethora of foreign expansion prospects in the future years. According to the company’s most recent research, the carrier expects a significant revenue increase of around $30 billion by 2028, indicating an average growth rate of 7-8%.
This optimistic view is bolstered by Air Canada’s intentions to increase its global network and passenger capacity. The airline estimates a 5-6% year-over-year rise in available seat miles (ASMs) through 2028, for a total capacity of around 130 billion ASMs.
Air Canada’s geographically wide route network serves as the foundation for its expansion, allowing it to respond to changing market conditions. The carrier’s capacity deployment is currently spread across multiple areas, with 21% for domestic routes, 34% for the Atlantic, 16% for the Pacific, and 10% for the LATAM and Caribbean markets.
Aside from its Canadian hubs, Air Canada maintains a significant presence throughout North America, with strategically located foreign gateways.
The airline’s market-leading positions in cities such as Vancouver, Montreal, Toronto, and Halifax show its capacity to act as a vital transit hub for passengers flying to and from the United States, as well as destinations in Europe, Asia, and beyond.
Looking ahead, Air Canada plans to increase its worldwide reach by adding a new destination in 2025: Manila, Philippines.
Modern Fleet
Air Canada’s passenger fleet has undergone a deliberate makeover to improve efficiency and competitiveness.
The airline has retired older aircraft, including Boeing 767s and Airbus E90s, and replaced them with newer models, such as Airbus A220s. Air Canada’s fleet simplification and regionalization has enabled it to simplify operations, enhance fuel efficiency, and lay a solid foundation for future expansion.
By 2028, the airline’s fleet is projected to include a mix of narrow-body and wide-body aircraft, such as the Boeing 777, 787, Airbus A330, A321, and A220 models, giving it the flexibility and capacity to meet changing passenger demands.
Bengaluru and Many New Destinations
Air Canada intends to operate flights to more than 40 new locations across six continents.
According to the data, immigration was the primary source of new demographics in Canada between 2016 and 2021, with India accounting for the highest share at a compound annual growth rate (CAGR) of 6%.
This flood of Indian immigrants, which accounts for more than 25% of total immigration, demonstrates the growing importance of the India-Canada tourism business.
Other major demographic shifts include immigration from the Philippines at a 4% CAGR and Nigeria at a staggering 14% CAGR. The diversification of Canada’s population, with contributions from Asia, Africa, and other places, lays a solid foundation for increased air travel demand.
This is supported by the fact that passenger travel between Canada and India is expected to double between 2016 and 2023, with an annual industry passenger volume of 2.2 million by then.
Air Canada has listed Bengaluru (BLR) as a prospective destination. It is expected to service this city from Montreal. This 8019-mile / 12905-kilometer route can be served by the airline’s Boeing 777 and 787 aircraft.
Air Canada currently services Delhi and Mumbai from its hubs in Toronto and Montreal.
Stay tuned as we explore and review the entire presentation. We will soon publish additional articles on A321XLR routes, fleet updates, financial performance, loyalty programs, and much more.