Air Canada sees surging overseas corporate travel following US trade tensions

MONTREAL, Feb 13 (Reuters): Air Canada sees a near 30 per cent surge in corporate traffic flowing overseas as the country seeks to diversify trade away from the United States, fueling demand for international travel, a company executive said on Friday.

"We're seeing a lot of corporate demand growth on the North Atlantic, seeing almost a 30 per cent increase in the amount of corporate traffic going to Europe and the Pacific and we attribute part of that to the fact that Canada can diversify trade corridors," Chief Commercial Officer Mark Galardo told analysts.

In its fourth-quarter results statement on Thursday, Canada's largest carrier had forecast 2026 core profit marginally above Wall Street estimates, betting on strong demand on international routes outside the U.S. and a surge in premium travel.

Canadian officials are trying to foster a new global trading order by working more closely with China and inking smaller trade deals, but the country remains constrained by Canada's overwhelming economic dependency on the United States.

Montreal-based Air Canada expects higher revenue in 2026 as it adds seats and benefits from surging demand for premium travel, but faces cost pressures from labor agreements reached with unions.

The carrier said premium travel accounted for about 30% of total passenger revenue. Strong premium cabin demand and long-haul bookings helped it offset softness on U.S.-Canada routes due to the trade tensions between the countries.

US airlines have also seen premium travel as a revenue-generating bright spot.