Joining US peers, Air Canada sees strong demand while managing changed transborder trends

US airlines recently offered surprisingly positive near-term outlooks in the face of climbing oil prices and uncertainty over the duration of war in the Middle East.

It's the first time those airlines have faced a major spike in fuel costs without hedging instruments in place, and for now, the market is absorbing increases in airfares instituted to offset a sudden run-up in fuel costs.

Across the border, Air Canada is also seeing steady demand, and pushing through its own fare increases.

But unlike its US counterparts, Canada's largest airline has some short term hedging in place that is also helping in the battle against spikes in fuel prices.

Air Canada also has a different approach in managing changing US transborder demand patterns during the past year, including leveraging a diverse fleet, leaning into corporate traffic, and continuing to build out sixth freedom traffic.

After geopolitical tensions created that shift a year ago, Air Canada and other airlines face a raft of new challenges stemming from a conflict that could have reverberations long after it's over.