Air Canada relies on business travellers to boost profits following decline

Air Canada Shifts Focus to Corporate Travel as Post-Pandemic Demand Wanes

As the initial surge in post-pandemic travel begins to taper off, Air Canada is pivoting its strategy to target corporate customers in hopes of boosting ticket sales. The country’s largest carrier reported a first-quarter earnings loss and an eight per cent drop in share price, prompting a shift in focus towards the business travel sector.

Mark Galardo, head of revenue and network planning at Air Canada, noted a promising uptick in corporate demand late in the first quarter and into the second quarter. Premium products such as business cabin and premium economy fares accounted for a significant portion of passenger revenue growth, signaling a potential shift in the market.

The trend mirrors the success seen by U.S. carriers, with Delta Air Lines, United Airlines, and Alaska Airlines all reporting strong rebounds in corporate sales. This resurgence in business travel is expected to drive growth in the sector, with spending on business travel in Canada forecasted to increase by nearly 14 per cent this year.

Despite facing challenges such as supply chain issues and rising fuel costs, Air Canada remains optimistic about its future prospects. The company reaffirmed its plans to increase capacity and adjusted earnings for the year, aiming to recover from the impact of the pandemic on the travel industry.

While the road to recovery may be long, Air Canada’s strategic shift towards corporate travel signals a new direction for the airline as it navigates the changing landscape of the post-pandemic travel market.