Air Canada Expands International Network with Airbus A350-1000 Introduction

Air Canada Introduces New Airbus A350-1000 for Global Expansion

Air Canada has announced the acquisition of the Airbus A350-1000 wide-body aircraft as part of its fleet modernization program, with plans to enhance its international network. This strategic move includes a firm order for eight aircraft, with an additional option for another eight, set to begin delivery in the latter part of 2030.

Mark Galardo, Executive Vice President and Chief Commercial Officer of Air Canada, expressed his enthusiasm about this advancement, stating, "The introduction of the Airbus A350-1000 further solidifies Air Canada's position as a leading airline in the industry over the next decade. This state-of-the-art equipment brings a new dimension to our long-haul capabilities in terms of range, capacity, and cost-effectiveness, providing customers with new possibilities for long-distance travel."

He further emphasized the versatility of the A350-1000, noting that it will complement existing aircraft in the fleet while supporting a robust and diversified future network. Galardo indicated that the A350-1000 will serve as a key component in connecting customers, hub airports, and Canada to the world.

John Di Beir, Executive Vice President and Chief Financial Officer, also shared insights on the forthcoming aircraft. He noted, "The introduction of the Airbus A350-1000 is a forward-thinking investment that will enhance Air Canada's long-term cost efficiency. This aircraft contributes to improved operational economics and reliability, allowing us to maintain competitiveness in our global network. With its lightweight materials and next-generation engines, fuel efficiency is expected to improve dramatically, contributing to our financial and environmental targets. This order is a significant step in our fleet modernization efforts, aligning with our capital allocation priorities."

The new aircraft will be powered by Rolls Royce XWB97 engines and utilize lightweight materials, which according to estimates from Airbus, could lead to a fuel consumption reduction of up to 25% compared to previous models. With a range of approximately 9,000 nautical miles, this aircraft is set to revolutionize long-distance air travel.

In terms of passenger comfort, the A350-1000 is touted by Airbus as one of the quietest twin-aisle cabins available in the market today. With a cabin altitude set at 6,000 feet, it aims to reduce the physical strain and effects of jet lag, ensuring a more enjoyable travel experience. Furthermore, it will feature the latest generation of in-flight entertainment systems and connectivity options, as well as new cabin standards from Air Canada, expected to be implemented later this year.

This latest order for the A350-1000 follows the introduction of 14 Boeing 787-10 Dreamliners set to begin service later this year. Additionally, Air Canada is preparing to receive its first 30 Airbus A321XLR aircraft soon, while continuing deliveries of the Airbus A220, with the remaining 23 units from a firm order of 65 expected to be inducted into the fleet. There are also plans for five Boeing 737 MAX aircraft to be acquired through leasing by 2026.

These new aircraft will operate with upgraded connectivity and in-flight entertainment systems, reflecting Air Canada's commitment to next-generation cabin designs and standards.

About Air Canada

Air Canada is the largest airline in Canada and serves as the country's flag carrier while being a founding member of the world-renowned Star Alliance network. Its headquarters is located in Montreal, and it operates regularly scheduled flights to over 180 destinations, including international routes across Canada, the USA, and six continents. Air Canada has earned a four-star rating from Skytrax, signifying its high level of service and quality.

The airline’s Aeroplan program is Canada’s leading travel loyalty program, boasting over ten million members worldwide who can earn and redeem points with the largest airline network globally, encompassing 45 carriers, as well as through various product offerings, hotels, and car rental partners. Through Air Canada Vacations, the airline provides an extensive range of travel packages combining accommodations, flight tickets, cruises, day tours, and car rentals across hundreds of destinations worldwide.

Air Canada's cargo division, Air Canada Cargo, utilizes both passenger and dedicated freighter aircraft to deliver air cargo services and connections to hundreds of destinations across six continents. In line with its climate initiatives, Air Canada has set a long-term goal of achieving net-zero greenhouse gas emissions by 2050. More details can be found in Air Canada's Climate-related Financial Disclosures Task Force (TCFD) report.

Air Canada's stocks are listed on the Toronto Stock Exchange (TSX) and the OTCQX in the United States.