More news on this day
Air Canada is betting big on the Canada–Mexico corridor this summer, unveiling an aggressive schedule that boosts capacity, adds new links from Montreal and strengthens its three coastal hubs just as other Canadian carriers retreat from the U.S. market.
A Strategic Pivot Toward the South
Air Canada is moving decisively to capture a bigger share of north–south travel, confirming an 18 percent year-on-year increase in seat capacity to Mexico for summer 2026. The move positions the flag carrier as one of the most assertive players in a Canada–Latin America marketplace that has been surging even as transborder traffic to the United States slumps. Executives frame the shift as the latest phase of a long-term pivot that began before the pandemic and has accelerated amid political and economic friction with Washington.
Industry analysts say the new schedule amounts to a clear declaration that Mexico, rather than the U.S., will be the primary growth engine for Air Canada’s leisure and short-haul international flying over the next few seasons. While the airline continues to serve dozens of American cities, the sharpest capacity increases are now pointed south, into resort and commercial centers that are seeing record numbers of Canadian arrivals. Air Canada’s strategy contrasts with rivals that have trimmed U.S. exposure, choosing instead to double down on demand where it is strongest.
New Montreal–Guadalajara Link Anchors Expanded Network
At the heart of the new Mexico schedule is a year-round route linking Montreal and Guadalajara, due to launch on June 2. The service will operate three times a week during the summer peak, giving Quebec’s largest city its first nonstop connection to Mexico’s second-largest metropolitan area. For Air Canada, the move deepens its presence in a key industrial and technology hub while also appealing to a growing community of Mexican nationals with ties to Quebec.
The Montreal–Guadalajara link builds on the carrier’s earlier decision to add Guadalajara from Toronto as part of its winter 2025–26 Latin America expansion. Together, the two routes turn the Jalisco capital into a small but significant node in Air Canada’s network, allowing passengers from across Eastern Canada to connect via Montreal and Toronto into western Mexico. By making the service year-round, not merely seasonal, Air Canada is signaling confidence that corporate, visiting-friends-and-relatives and tourism traffic can support consistent demand well beyond the winter sun rush.
More Frequencies From All Three Hubs
Beyond the new Montreal–Guadalajara service, Air Canada is layering additional flights onto some of its most established Mexico routes. From Montreal, the busy Montreal–Cancun corridor will rise from seven to 11 flights per week, effectively offering travelers more than one flight per day in each direction during the busiest weeks of summer. Toronto’s connection to Monterrey will grow from three to four weekly frequencies, underlining the importance of Mexico’s northern industrial belt to Canadian exporters and investors.
On the west coast, Air Canada is leaning into strong origin-and-destination traffic between British Columbia and Mexico. Vancouver–Mexico City will grow from a daily service to 11 flights per week, while Vancouver–Puerto Vallarta will climb from one to two weekly flights. Combined, the additions will lift Air Canada’s offering to around 10 flights per day from its three main hubs to five Mexican cities during the summer high season, representing roughly 1,700 one-way seats each day. This gives the airline a broad schedule to balance business, leisure and connecting traffic across time zones.
Riding a Wave of Canada–Mexico Demand
The carrier’s Mexico buildup comes against a backdrop of robust growth in air travel between the two countries. Government and industry data show that passenger volumes between Canada and Mexico have climbed sharply over the past two years, with more than 3.7 million travelers flying the corridor in the first half of 2025 alone. That performance marked a double-digit percentage increase on the previous year and pushed Mexico further up the list of top international destinations for Canadian holidaymakers.
Analysts attribute the surge partly to shifting traveler preferences. With cross-border travel to the United States dampened by trade disputes, heightened immigration scrutiny and currency volatility, many Canadian travelers have been steering vacations toward Mexico’s resorts, colonial cities and emerging coastal hubs. Carriers such as WestJet, Air Transat and Aeroméxico have responded with their own capacity increases, but Air Canada’s latest move stands out for its breadth and its mix of leisure and business-focused markets.
From Winter Sun Push to Year-Round Latin Strategy
Air Canada’s summer 2026 schedule builds directly on a record winter expansion toward Latin America. Earlier announcements for the 2025–26 season included new routes from Toronto and Montreal to Cartagena and Rio de Janeiro, added services to Santiago and Guatemala City and an inaugural Vancouver–Huatulco link. That winter plan lifted Latin America capacity by about 16 percent compared with the previous year and gave the airline more than 55 daily flights and 80,000 weekly seats across the region.
By pushing significant Mexico growth into the summer months, the carrier is extending what was once a seasonal push into a year-round strategy. Executives have stressed that Latin America is now a core pillar of network planning alongside Europe and transpacific markets, not merely a winter escape sideline. The introduction of narrowbody long-range aircraft in coming years and the redeployment of widebodies away from softer transborder routes are expected to further support the Mexico and broader Latin push.
Competitive Landscape Shifts as U.S. Routes Shrink
The timing of Air Canada’s Mexico surge is notable because it coincides with a marked pullback from U.S. flying across Canada’s airline sector. Carriers such as Air Transat and WestJet have cut or suspended multiple transborder routes amid weaker demand and rising political tensions between Ottawa and Washington. Aviation data show that flight bookings between Canada and the United States fell sharply through 2025, prompting capacity reductions and leaving some smaller American cities without nonstop links to Canadian gateways.
In that context, Mexico has emerged as a relative bright spot. Low-cost operators including Flair Airlines have added new services such as Vancouver–Mexico City to complement existing links to Cancun and Puerto Vallarta, while WestJet has expanded its already large winter schedule to beach and surf destinations on both coasts. Air Canada’s decision to hike summer capacity rather than simply matching winter competitors is being read by analysts as an attempt to reposition itself as the preferred full-service option for Canadians looking south, with loyalty benefits, global connectivity and premium cabins helping to differentiate it from budget rivals.
Hubs, Connectivity and the Wider Network
Air Canada is also using the Mexico expansion to deepen connectivity across its global network. Flights from Montreal, Toronto and Vancouver are being timed to feed inbound passengers from Europe and Asia onto Mexico-bound services, turning Canada into a north–south transit bridge. Routes such as Toronto–Mexico City and Vancouver–Mexico City are especially important for onward links to South and Central America via partner airlines, while Cancun and Puerto Vallarta remain magnets for point-to-point leisure traffic.
Network planners are keen to stress the role of connecting flows in de-risking the aggressive build-out. With long-haul additions such as new services to Quito and year-round links to European cities like Manchester and Copenhagen also coming on stream, the carrier can funnel passengers through its hubs in multiple directions. The addition of more frequency, rather than just larger aircraft, provides schedule flexibility that is attractive to business travelers and helps smooth peaks in leisure demand.
Onboard Product Aims to Lock In Loyalty
Alongside capacity additions, Air Canada is leaning on product upgrades to secure a larger slice of the Canada–Mexico market. The airline has rolled out complimentary beer, wine and curated snacks in economy across its mainline network, including flights to Mexico. Morning departures feature items such as oat bars, while later services offer Canadian-branded snacks and even non-alcoholic beer options. The strategy reflects a broader effort to position the carrier as a premium choice within economy, competing not only on schedule but also on perceived value.
Premium cabins are also being marketed heavily on longer Mexico sectors from Western Canada, where lie-flat business seats and upgraded dining compete with the extra-legroom and buy-on-board offerings of low-cost competitors. Loyalty incentives under the Aeroplan program, including bonus points on sun routes and bundled hotel partnerships in popular resorts, are designed to keep frequent travelers within Air Canada’s ecosystem even as they consider a growing menu of options on the Canada–Mexico corridor.