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

Air Canada AC-T is embarking on a major expansion of its overseas network, announcing seven new routes in Europe and Asia.

Chief operating officer Mark Galardo says the move signals a push to become what he calls a “true global” carrier as the country’s largest airline aims to draw more heavily on higher-margin international customers and less on domestic ones.

It also comes as Air Canada and its competitors struggle to navigate higher jet fuel costs amid the Iran war and a prolonged plunge in Canadian demand for U.S. travel.

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Starting next summer, the airline says it will launch service to foreign cities that include Guangzhou in China, Oslo in Norway and Dubrovnik in Croatia, cementing its status as the second-largest North American carrier by overseas destinations served.

Galardo is stressing Canada as an ideal spot for layovers on trips between the Americas and Europe, which make up a key revenue source.

Driving the expansion are new long-range Airbus A321 narrow-body jets as well as Boeing 787 wide-bodies, though major delivery delays have hampered their rollout.