Air Canada anticipates increased labor expenses and a record fleet expansion in 2026.

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Nov 05 2025

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Source: Reuters

Labor Costs and Travel Demand: Air Canada is facing challenges with higher labor costs and a decline in U.S. leisure travel, leading to a lower third-quarter profit and a 2.9% drop in shares.
Fleet Expansion Plans: The airline plans to add 35 new aircraft in 2026, the largest single-year addition in its history, while also retiring older planes to enhance its fleet.
Consumer Demand for Premium Services: Despite current challenges, Air Canada executives anticipate strong consumer demand for premium services and expect double-digit growth in corporate revenue in late 2025.
Strategic Trade Diversification: The introduction of new Boeing 787 aircraft will help Air Canada capitalize on Canadian government initiatives to diversify trade beyond the U.S. market.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.