Air Canada Targets Growth With Enhanced Services To San Francisco, Chicago, Los Angeles, New York, Manila, Oklahoma, And San Antonio

Published on February 15, 2025

Air Canada sets its sights on expansion, offering enhanced services to key cities like San Francisco, Chicago, Los Angeles, New York, Manila, Oklahoma, and San Antonio.

Flag carrier Air Canada (AC) has outlined an ambitious growth plan, targeting the addition of 10 to 15 new U.S. destinations by 2028. This expansion aims to cement its role as a key global connector, linking North America with Europe and Asia.

The airline plans to increase its network footprint to 60-65 U.S. airports, a significant jump from its current presence in 50 destinations. This expansion aligns with Air Canada’s strategy of leveraging its primary hubs—Montreal-Trudeau, Toronto Pearson, and Vancouver International—to provide efficient transit options for passengers traveling to Europe and Asia.

Expansion Announced at Routes Americas Conference

During the Routes Americas conference in Nassau, Bahamas, Air Canada’s Vice President of Planning and Scheduling, Alexandre Lefèvre, unveiled the airline’s roadmap for U.S. growth. The strategic focus will be on mid-sized American cities that can effectively channel traffic through Canadian hubs for onward international travel.

Air Canada’s recent addition of Jacksonville International Airport illustrates this focus on underserved markets with strong potential.

International Growth and Fleet Modernization

Complementing its U.S. expansion, Air Canada is also growing its international footprint. New routes to Manila, Naples, Prague, and Porto have been announced for 2025, reflecting the airline’s commitment to broadening its global reach.

To support this aggressive growth, Air Canada has invested heavily in fleet modernization. The airline has secured 83 new aircraft orders, including:

• 27 Airbus A220-300s
• 30 Airbus A321XLRs
• 18 Boeing 787-10s

These aircraft, set for delivery by 2029, will enhance operational efficiency and enable the launch of longer-range routes. However, potential delays from Airbus and Boeing may impact delivery timelines.

Air Canada forecasts an annual growth rate of 5% to 6% over the next three to four years, driven by its expanded network and fleet enhancements.

Focus on Mid-Sized U.S. Cities

Air Canada’s strategy targets markets with high potential for connecting traffic. Oklahoma City has been highlighted as an example of the type of destination that aligns with the airline’s expansion goals. The city’s strategic location provides seamless access to European connections via Canadian hubs.

Other mid-sized markets such as Salt Lake City, San Antonio, and Louisville are also being evaluated for their compatibility with Air Canada’s network strategy.

While these cities present strong opportunities, Air Canada is carefully prioritizing resources. This was evident in its decision to discontinue service to Hartford, Connecticut, in October after over 20 years of operations.

Strengthening Partnerships with United Airlines

Air Canada’s expansion into the U.S. is supported by its joint venture with United Airlines. This partnership enables:

• Coordinated scheduling
• Harmonized fare structures
• Expanded transborder market presence

Additionally, Air Canada and United maintain a separate joint venture with the Lufthansa Group for transatlantic operations, further strengthening the airline’s position in key international markets.

Focus on Major U.S. Metros and International Connectivity

While mid-sized cities are a key part of the expansion, Air Canada continues to prioritize major U.S. metropolitan areas like San Francisco, Los Angeles, Chicago, and New York. These cities are critical hubs for connecting international traffic, with demand often outstripping the current capacity.

The Role of Canadian Hubs

Air Canada’s three major hubs—Montreal, Toronto, and Vancouver—are central to its expansion strategy. These airports serve as critical transit points for passengers traveling from mid-sized U.S. cities to international destinations.

• Montreal-Trudeau: Key for French-speaking markets and connections to Europe.
• Toronto Pearson: Largest hub, providing extensive global connectivity.
• Vancouver International: Gateway to Asia-Pacific markets.

This hub-focused approach positions Air Canada as a key player in sixth-freedom traffic, where U.S. passengers transit through Canada to reach global destinations.

Opportunities and Challenges Ahead

Air Canada’s strategic growth plan highlights its commitment to strengthening transborder and international connectivity. However, challenges such as fleet delivery delays and market competition remain potential hurdles.

The airline’s ability to effectively execute its expansion will hinge on:

• Efficient resource allocation
• Maintaining partnerships with key players like United Airlines
• Addressing operational challenges from ongoing fleet modernization

Looking Ahead

As Air Canada aims to add 10 to 15 new U.S. destinations and expand its global reach, the airline is poised to play a pivotal role in connecting North America with Europe and Asia. With its robust growth strategy and investments in fleet modernization, Air Canada is set to remain a leading global carrier in the years to come.