Air Canada is reducing its capacity there and shifting aircraft to routes in Asia, due to increased competition and softer demand in Europe.
The airline has seen stronger performance in the Asia-Pacific region compared to Europe.
Air Canada is reallocating its resources from Europe to the Asia-Pacific region.
Due to softer demand in the European market, the airline is experiencing stronger performance in the Pacific region.
The carrier has reduced its planned capacity growth for Atlantic routes by 8% and is redirecting those aircraft to Asia. New routes to Seoul and Osaka have shown promising results.
While leisure travel to Europe remains robust, particularly in Mediterranean destinations, the overall European market is facing increased competition.
Air Canada expects the Atlantic market to stabilize by the end of the year and anticipates continued strong performance in the Pacific region throughout 2024.
The airline plans to maintain a cautious approach to capacity growth for the rest of the year, focusing on market conditions and supply chain challenges.
Despite a recovery in corporate travel, demand is still 25-30% below pre-pandemic levels.
Air Canada is expanding its fleet with new aircraft deliveries, including Airbus A220s, Boeing 737-8s, A321XLRs, and 787-10s.
These additions will support future growth and network expansion, particularly in the Asia-Pacific market.
The airline’s financial performance for the second quarter showed increased revenue but also higher operating expenses.
Net income declined compared to the same period last year.
However, Air Canada has improved its on-time performance.
Source : https://www.travelandtourworld.com/news/article/air-canada-shifts-its-focus-from-europe-to-asia/
