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Or sign-in if you have an account.All of Air Canada’s planes, including those deployed on its lower-cost leisure unit Rouge, will be retrofitted to the latest design standards over the next decade. Photo by John Mahoney/MONTREAL GAZETTEAir Canada is making a major bet on a new fleet of A321XLR planes manufactured by Airbus SE to help open up new routes, generate revenue growth and save on fuel costs.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorCanada’s largest airline showcased the aircraft for the first time in Montreal ahead of a commercial flight debut next week. The company is trying to turn the page on months of negative headlines, including a strike by flight attendants, a fatal accident at New York’s LaGuardia Airport, the retirement of its chief executive officer after a public-relations crisis and the suspension of its financial outlook due to soaring jet fuel prices.The new single-aisle aircraft is the first of 30 Air Canada expects to receive from Airbus by the end of 2029 — a delay of about two years due to supply-chain issues. The narrowbody plane has a range of up to 4,700 nautical miles and a capacity of 182 passengers.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThat will give the airline the flexibility to serve secondary routes, such as Toronto-Copenhagen or Montreal-Berlin, at lower cost, executives said.The new Airbus jet “allows us to have either service year-round, whereas maybe before we were just able to do it in the summer,” chief operations officer Mark Nasr said. “Or it allows us to have service on a daily basis, whereas maybe before we were servicing a market a few times a week.”Canadians are travelling more to European and South American destinations as some shun the United States in protest over President Donald Trump’s tariffs and his rhetoric about making Canada the 51st state. For Air Canada, passenger revenue on transatlantic routes rose four per cent last year, but it dropped 10 per cent for U.S. flights.The airline has launched new services such as flights from Montreal to Catania, Italy, and from Toronto to the island of Roatan, Honduras.The A321XLR consumes 20 per cent less fuel than its previous generation, lowering the financial risk of exploring new routes, Nasr said. Air Canada has a target to raise its adjusted Ebitda margin to at least 17 per cent by 2028, from around 15 per cent last year. (Ebitda is earnings before interest, taxes, depreciation and amortization.)In the new Airbus jet, Air Canada is introducing a cabin design that includes 14 lie-flat seats in business class — which it calls “Signature Class” — and ergonomic reclining seats in economy class. All seats include phone and tablet holders, 4K OLED screens, Bluetooth audio and free Wi-Fi.Most of the upgrades are in business class, where profitability is higher. “What we’ve seen, particularly since the COVID pandemic, is demand for premium experiences growing much more quickly than demand for the core product,” Nasr said. “As we’re going to take these new deliveries, we’re going to shift to be more of a premium offering, and we’ll grow revenue just by that change.”Air Canada also expects first delivery of Boeing 787-10 Dreamliner aircraft this year, on which it will test a higher level of business class that it’s calling “Signature Plus” — four suites in the first row of the plane, with a companion seat and a larger bed.Bloomberg Intelligence analyst Francois Duflot said Air Canada is embarking on investments in higher-priced seats partly as a response to “higher labor costs, higher aircraft maintenance, higher aircraft ownership costs in general, and that’s part of the global movement.”The improvement of the fleet will bring efficiencies, but the airline might still miss its 2028 Ebitda margin target, and it will have to convince consumers to pay the higher fares, he said.All of Air Canada’s planes, including those deployed on its lower-cost leisure unit Rouge, will be retrofitted to the latest design standards over the next decade. The airline currently operates more than 300 aircraft, and expects to reach nearly 400 by 2030.Expenditures for new aircraft are estimated at about $9 billion by 2028 and aircraft reconfiguration at about $4.5 billion, the airline said in a 2024 investor presentation. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.