Air Canada to open new European, Asian routes in bid to lure more high-margin customers

Air Canada to open new European, Asian routes in bid to lure more high-margin customers CHRISTOPHER REYNOLDS MONTREAL THE CANADIAN PRESS PUBLISHED 14 HOURS AGO UPDATED 6 HOURS AGO Open this photo in gallery: An Air Canada plane takes off from Montreal-Pierre Elliott Trudeau International Airport in 2024. CHRISTINNE MUSCHI/THE CANADIAN PRESS COMMENTS SHARE SAVE FOR LATER Listen to this article Learn more about audio Log in or create a free account to listen to this article. Air Canada AC-T +2.42% increase has embarked on a major expansion of its network overseas, announcing seven new routes in Europe and Asia for next summer. Chief commercial officer Mark Galardo says the move signals a push to become a fully international carrier as the country’s largest airline aims to draw more on higher-margin globetrotters and less on purely domestic customers. “We talked about an Air Canada that would be further transforming itself into a global airline – not just a Canadian airline, a true global airline – and be focusing on further building its long-haul network,” Galardo said in a phone interview. The build-out also comes as Air Canada and its competitors struggle to navigate fuel costs as the Iran war drags on, a prolonged plunge in Canadian demand for U.S. travel and the years-long closure of Russian airspace to Western airlines – a serious hurdle to travel between central and eastern North America and Asia, given the polar routes through Siberian skies. To help offset those challenges, the airline plans to launch new service to five foreign cities including Guangzhou, China – the trip from Vancouver steers clear of Russia – Oslo, Norway, and Dubrovnik, Croatia, cementing its status as the second-largest North American airline by overseas destinations served. Air Canada expects fall revenue boost as premium passengers avoid summer heat Galardo stressed Canada’s location as ideal for layovers on trips between the Americas and Europe, which make up a key source of revenue. “What’s really critical for us is to position Canada as a global transit point for traffic to and from the Americas at large,” he said, pointing to Air Canada’s biggest hubs in Toronto, Montreal and Vancouver. “We’re 42 million Canadians, but when you look at our geographic placement, we can effectively serve a market that’s a billion people wide and deep.” Driving the expansion are new long-range Airbus A321 single-aisle jets as well as Boeing 787 wide-bodies, though major…