Air Canada has placed a firm order for five additional Airbus A220-300 aircraft, marking the airline’s third order for the type and bringing its total firm orders for the A220-300 to 65. The announcement, made on December 20, 2024, coincides with the fifth anniversary of Air Canada’s first A220 delivery in December 2019.
The A220-300, assembled in Mirabel, Quebec, has become a key component of Air Canada’s fleet modernization strategy. Since its introduction to the fleet in January 2020, the aircraft has been deployed to over 70 destinations across North America.
“The A220 has delivered on its promises for Air Canada in its five years in service,” said John Di Bert, Executive Vice President and Chief Financial Officer at Air Canada. “It has allowed us to open new routes and better serve existing routes with an aircraft that has the right economics to support our profitable growth strategy. It is also very popular with customers.”
Air Canada initially ordered 45 A220-300s in 2016, followed by an additional order for 15 in 2022. The airline was the North American launch operator for the A220-300.
“This is Air Canada’s third order for the A220 in a few years,” said Benoît de Saint-Exupéry, EVP Sales Commercial Aircraft at Airbus. “We are committed to working closely with the flag carrier as we support its fleet renewal programme.”
The A220, known for its fuel efficiency and reduced carbon emissions, aligns with Air Canada’s broader sustainability goals. The aircraft is powered by Pratt & Whitney’s latest-generation GTF engines, offering a 25% reduction in fuel consumption and carbon emissions per seat compared to previous-generation aircraft. Airbus aims for all its aircraft, including the A220, to be capable of operating with 100% Sustainable Aviation Fuel (SAF) by 2030. The aircraft can currently operate with up to 50% SAF.
Ambitious growth plans unveiled
This latest aircraft order comes just days after Air Canada revealed ambitious long-term growth plans at its 2024 Investor Day. The airline aims to achieve $30 billion in operating revenues, at least a 17% adjusted EBITDA margin, and approximately a 5% free cash flow margin by 2028.
“We are proud and excited to share Air Canada’s ambitions,” said Michael Rousseau, President and Chief Executive Officer of Air Canada. “Our plan includes expanding the network, improving the customer experience, taking care of our employees, enhancing financial performance and continuously investing in the business to generate long-term value for investors, while being mindful of the interests of our stakeholders.”
Air Canada reaffirmed its full-year 2024 guidance and provided guidance for the full year 2025. It projects an approximate 5% increase in ASM capacity compared to 2023, with a further 3-5% increase projected for 2025. The airline anticipates adjusted EBITDA of approximately $3.5 billion for 2024 and between $3.4 and $3.8 billion for 2025.
As of the end of November 2024, Air Canada’s fleet comprises 134 Airbus aircraft, including the A320 and A330 families. The airline also has an order for 26 A321XLRs.
Airbus has received nearly 900 orders for the A220 from 32 customers, with almost 380 delivered. The A220 is currently in service with 23 operators worldwide, flying on over 1,500 routes to more than 460 destinations.
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