Air Canada (AC) Scotiabank 24th Annual Transportation & Industrials Conference summary

Industry overview and demand trends

• 2023 saw extraordinary demand with low fuel prices and pent-up travel, especially among Canadians, leading to strong traffic growth of 3–5% in 2024.

• Demand has normalized in 2024, with continued positive outlook into 2025.

• Lower interest rates have eased concerns about Canadian consumer strength, supporting ongoing travel demand.

• The network and brand are considered strong and well-positioned for the next five years.

• Confidence is high for a successful second half of the decade, supported by a clear fleet strategy.

Labor negotiations and workforce

• A new pilot contract was reached after 10 years, balancing competitive wages and cost structure.

• The agreement aligns with industry standards and supports workforce engagement and future growth.

• Pilot availability has stabilized after training disruptions during the pandemic, with new aircraft requiring ongoing training.

• Some travel deferrals occurred during contract negotiations, but impacts were contained.

Yield, capacity, and competition

• 2023 had early, strong transatlantic demand, but 2024 saw excess capacity and yield normalization.

• Transatlantic capacity growth was limited to 3% in 2024, with discipline maintained.

• Transpacific routes saw high yields and load factors, expected to normalize going forward.

• Competition increased from both European and U.S. carriers, with industry capacity up nearly 20% in some markets.

• Domestic and trans-border markets are currently balanced, with rational competitor behavior.