Air Canada boosts capacity as travel demand recovers

Air Canadasaid Wednesday it will more than double its capacity for the year as travel demand recovers and domestic airline competition heats up. The Montreal-based airline said it will boost its full year seat capacity by 150 per cent compared to 2021 levels as COVID-19 restrictions ease in Canada and around the world and demand ramps up. But a full recovery to pre-pandemic levels will take longer, as this year's capacity levels represents 75 per cent of what Air Canada flew in 2019. The airline said it expects capacity to reach 95 per cent of its 2019 levels by 2024. "The overall recovery is indeed getting closer," Air Canada's CCO Lucie Guillemette said at the company's annual investor day on Wednesday, adding that the airline will add new routes this year flying out of its main hubs in Montreal, Toronto and Vancouver. "We predict to be close to full recovery by 2024. This is buoyed by a strong domestic recovery, a strong rebound in the visiting family and relative market, and the overall pent up demand for leisure travel," she said. "The recovery in business segments or business markets will lag. However, we anticipate a strong strong rebound in 2023." Air Canada is also bracing for increased competition in the domestic market, which has seen the several smaller carriers ramp up capacity through the COVID-19 pandemic.<br/>