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Air Canada revises growth plans for Montreal-San Francisco route

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Air Canada revises growth plans for Montreal-San Francisco route
Policy
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Vagn Sørensen Air Canada's Chairman | Official Website

Air Canada has decided to maintain its current capacity for the Montreal to San Francisco route this winter, after previously planning to increase daily flights. Originally expecting to operate this route twice daily from November to March, the airline will now revert to past frequency levels.

Recent aviation filings indicate that Air Canada will sustain daily flights from November to March, aligning air travel operations with last winter’s pattern. These flights, operated by Boeing 737 MAX 8 aircraft, are scheduled again for this winter season.

At a recent shareholders' meeting, Vagn Sørensen, Air Canada's Chairman, noted concerning trends in the transborder market, highlighting a 10% decline in bookings year-on-year for flights to the US between April and September. This assessment was supported by Air Canada's position as a significant service provider in the US transborder market, facing competition from major US carriers like American Airlines, Delta Air Lines, and United Airlines, while Porter Airlines and WestJet cater to leisure-focused routes.

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Air Canada acknowledged that new trade measures and politics, particularly tariffs, could impact economic conditions, potentially altering air travel demand. The airline is actively monitoring these developments, as outlined in an annual report to investors.

In response to comments from Donald Trump concerning Canadian statehood, bookings experienced a reported drop between 71.4% and 75.7%. Nonetheless, Air Canada contested these figures, indicating that while demand had softened, the actual impact didn't mirror these statistics. The airline's available seat kilometers from Canada to the US are projected to be 7.6% lower in the summer months compared to the previous year.

Air Canada’s Q1 financial results, due May 9, are anticipated to provide further insight into the airline's current standing and transborder market conditions.

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