Air Canada uses five widebody aircraft for long-haul routes: the Airbus A330-300, the Boeing 777-200LR, the 777-300ER, the 787-8, and the 787-9 Dreamliner. For the most part, these aircraft all serve a distinct purpose, and the same is true of Air Canada’s new Airbus A321XLR. A narrowbody long-range twinjet with just 182 seats, it’s a very different machine to the widebodies, as it offers extremely low operating costs and has a leisure-oriented layout.
Interestingly enough, however, Air Canada is partially using the A321XLR to displace 787s. Air Canada’s 787-8s feature 20 business class seats and 255 seats in total, whereas the 787-9s feature 30 business class seats and 298 seats in total.
In contrast, the A321XLRs have just 14 business class seats and 182 seats in total. The A321XLR represents a significant cut in overall and premium capacity, especially given that the XLRs also lack a premium economy cabin, whereas both 787 variants have a 21-seat premium economy cabin.
Schedule Changes For Air Canada
Air Canada will be pulling the 787 from 11 routes in the coming months. The routes are as follows: Calgary-London, Ottawa-London, Montreal-Toulouse, Montreal-Porto, Montreal-Copenhagen, Montreal-Paris, Montreal-Edinburgh, Montreal-Casablanca, Montreal-Berlin, Toronto-Zurich, and Toronto-Venice. Some routes will see the Boeing 777 or Airbus A330 in place of the 787.
However, notably, six of the aforementioned services will now see the A321XLR on either some or all frequencies. This will coincide with Air Canada’s planned expansion for the 2026/2027 winter season and the 2027 summer season. Some of the airline’s upcoming routes will use the A321XLR for expansion, but the planes were also ordered to further optimize Air Canada’s transatlantic network.
The 787 was previously the long-range aircraft with the lowest operating costs in Air Canada’s fleet, but that is now the A321XLR, and the growing fleet of A321XLRs can increasingly be used to take over what were the 787’s weakest Europe routes. The Airbus A321XLR is the only long-range aircraft that the carrier is currently taking delivery of, with the 787-10 set to start arriving later in 2026.
Generally, this means that the carrier will be looking at routes where loads may be light, or fares may be weak, and then place the A321XLR on those routes. Cutting supply can raise yields in turn, and using a smaller aircraft could potentially allow for a boost in schedule if demand supports it, while the A321XLR costs less to run.
What Air Canada Is Doing With Its Freed-Up 787s
Air Canada is not simply using the A321XLR to replace 787s, which remain the most fuel-efficient widebody in the fleet. The freed-up 787s are instead being redeployed on routes where their size, range, and fuel efficiency are valuable. In December, Air Canada will place the 787 on its route from Toronto to Barcelona, while it will also be launching new services from Vancouver to Sapporo.
In May 2027, the airline will launch nonstop flights from Vancouver to Guangzhou and Montreal to Dubrovnik, while it will place the 787 on its routes from Montreal to Tel Aviv and Toronto to Prague. In June, the 787 will also take Air Canada’s route from Toronto to Stockholm. Apart from the Barcelona route, all of these routes are too long for the A321XLR to operate, while the Asia services can only be flown with either the 777 or 787.
Air Canada Long-Haul Fleet Cabin Layouts | Business | Premium Economy | Economy | Total Seats |
|---|---|---|---|---|
Airbus A321XLR | 14 | N/A | 168 | 182 |
Airbus A330-300 | 32 | 24 | 241 | 297 |
30 | N/A | 255 | 285 | |
Boeing 777-200LR | 40 | 24 | 236 | 300 |
Boeing 777-300ER | 40 | 24 | 336 | 400 |
28 | 24 | 388 | 440 | |
Boeing 787-8 Dreamliner | 20 | 21 | 214 | 255 |
Boeing 787-9 Dreamliner | 30 | 21 | 247 | 298 |
The 787, however, burns less fuel than either the 777 or the A330, which could operate the Europe services. In today’s environment of high fuel prices, the 787 is more important than ever, and Air Canada is further optimizing its use of the 787 to improve its route economics while also expanding its network across both oceans.
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Of course, the A321XLR isn’t the only aircraft taking over from the 787 on certain routes, and the other widebodies have their use too. The 777-300ER is a much larger aircraft than the 787, which means that it earns more revenue if filled. The A330-300s have a very similar configuration to Air Canada’s 787-9s, which means that they can essentially substitute in on shorter routes and let the 787-9s take over longer services where the impact of their fuel efficiency is greater.
Air Canada’s Use Of The A321XLR
Air Canada now operates five A321XLRs, with 25 more on the way. The first of these was delivered in April 2026, and the fleet is currently based in Montreal and Toronto. From Montreal, Air Canada is flying the XLR to Tenerife, Lisbon, and Toulouse, while out of Toronto, Air Canada is using the A321XLR to serve Tenerife, Manchester, and Copenhagen.
In addition, the type is flown on select domestic frequencies and to Los Angeles. Air Canada’s configuration for the A321XLR is actually fairly dense, with just 14 business class seats, 182 seats in total, and no premium economy. This means that it’s well-suited for leisure-heavy destinations where premium demand might be light, which can be reflected in its 2027 schedule for the aircraft.
Some of Air Canada’s new destinations for the A321XLR will include Basel, Oslo, and Shannon, while the aircraft will also launch new winter-seasonal flights to Seville in September 2027. The airline has ordered 30 A321XLRs in total, which will make the XLR fleet larger than Air Canada’s current A330 or 777 fleets.
It operates a large transatlantic network out of its Toronto and Montreal hubs, and the A321XLR will allow for significantly more expansion to smaller European spokes. Furthermore, the type can be used to serve busier destinations in the winter, when demand is otherwise lower, allowing Air Canada to operate these routes year-round rather than only during the summer.
Air Canada’s Widebody Fleet Evolution
Air Canada is currently flying 20 A330-300s, six 777-200LRs, 19 777-300ERs, eight 787-8s, and 32 787-9s. Among the widebodies, the 787 fleet is by far its largest at 40 aircraft, while Air Canada will also soon fly 30 A321XLRs alongside the twin-aisle planes. The next addition to the widebody fleet will be the 787-10, the first of which is already being tested by Boeing in preparation for delivery before the end of the year.
The carrier has 14 on firm order with an additional 12 options, which will be delivered until 2030. Air Canada is not currently planning to retire any widebodies when the 787-10s arrive, which means these planes will be solely for growth. With 332 seats, the 787-10 will have a higher capacity than any other widebody in Air Canada’s fleet except for the 777-300ER.
This means that this aircraft will find itself at home operating high-demand routes to Air Canada’s busiest European destinations. In addition, the 787-10 has the range to operate some transpacific services, although it remains to be seen if Air Canada will do this. The other twin-aisle aircraft type that Air Canada currently holds orders for is the Airbus A350-1000, set to start arriving in 2030.
The airline holds eight orders for the aircraft, with options for eight more, and this plane may have a unique purpose. Despite being sized similarly to the 777-300ER, the main appeal of this aircraft to Air Canada is its payload-range capability, as it can carry more payload farther than either the airline’s 777-300ERs or 787s, while also being extremely fuel-efficient.
The Impact Of Fuel Prices
In January 2027, Air Canada will discontinue its nonstop route between Vancouver and Singapore. This is the airline’s longest route, connecting its primary western hub to a major economic center in Asia, yet the flight couldn’t continue operating. While there were several factors behind the route being cut, current fuel prices were surely a factor behind the airline’s decision to discontinue the Singapore route.
After all, oil prices remain nearly double what they were a year ago. Widebody aircraft burn significantly more fuel than narrowbodies, which is usually compensated by their higher revenue potential. When oil prices are nearly $90 per barrel, however, airlines need to be much more vigilant. For Air Canada, the A321XLR is now more important than ever, as the aircraft burns substantially less fuel than even a 787.
Meanwhile, the 40-strong Dreamliner fleet is proving to be worth the investment, particularly on the transpacific network and longer transatlantic routes. Despite fuel prices being where they are, Air Canada has continued to expand its international network. Two new Asia routes are coming to Vancouver, while the airline has also expanded its nonstop Bangkok flights to year-round starting in the 2026 summer season.
Europe continues to be as lucrative as ever, and Air Canada is even innovating by adding winter seasonal flights to Seville, whereas most North America-Europe routes are year-round or summer seasonal. The current fuel prices make the 787 and A321XLR extremely valuable due to their efficiency.
This allows for more growth and further network optimization. Although costs continue to rise, these two aircraft are among the best in the industry to operate under such conditions, and the A321XLR will soon be a core aircraft within Air Canada’s long-haul fleet, while the 787 already is.
