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Air Canada bulks up capacity for the high season as long term labour stability improves

Analysis

Air Canada continues to hold a positive outlook for the North American summer high season since the bulk of its capacity is pegged to international markets, including long haul trans-Atlantic and trans-Pacific routes. International expansion remains the airline's most important priority as it is attempting to build a long haul network that rivals its large global airline counterparts in the US.

The airline also continues to drive sixth freedom traffic flows from the US, with the goal of doubling its market share among those passengers over the next couple of years. Air Canada has also subtly capitalised on the anti-Trump sentiment in the US by creating a smart campaign urging US citizens to "test drive" Canada before picking up and moving to the country.

Counter to some large US airlines that are facing tough labour negotiations, Air Canada is enjoying a period of employee stability as all of its major labour groups are now under long-term contracts. The longevity of those agreements allows Air Canada a degree of certainty in labour expense that some of its US peers do not enjoy.

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