Trans-Pacific challenges cloud Air Canada’s bullish outlook for the rest of its network
Conclusions presented by Air Canada at the end of 1Q2017, that trends were moving in the right direction in domestic, US transborder and trans-Atlantic markets, have largely come to fruition. The airline posted positive passenger revenue growth and yield increases in each of those entities in 2Q2017, and believes the positive momentum should continue into 2H2017.
The airline still faces challenges on its Pacific routes, and will transfer capacity deployed from its Vancouver hub to Beijing and Shanghai to the Atlantic, where demand is stronger.
It is not clear when yields on Air Canada’s Pacific routes will turn positive, but the company’s own capacity growth of more than 20% year-on-year in those markets has also pressured yields as it cycled through introductory pricing on routes launched in the trans-Pacific during that period.
Air Canada’s system capacity growth should slow in 2018 as it nears completion of a widebody fleet revamp and turns its attention to updating its narrowbody fleet. Growth in the airline’s average stage length will also start to slow down, which will mitigate the decline in yields Air Canada has experienced during the past few years as it has worked to bolster its international network.
To access CAPA Premium Analysis you need a CAPA Membership
Your window into the latest insights
CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.
Big picture strategic view
Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.
The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.
Customise your Alerts
CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.
I'm very impressed by the factual and detailed analysis CAPA is always doing.- CEO, Airline Member
Phone: +61 2 9241 3200 | Email: email@example.com