Air Canada Intends to Extend and Expand Commercial Agreement with PAL Airlines
The proposed agreement will support flying in Québec and New Brunswick from Montréal
MONTRÉAL, Jan. 08, 2026 (GLOBE NEWSWIRE) -- Air Canada and PAL Airlines announced today their intent to expand the commercial agreement under which PAL operates regional flights for Air Canada Express, helping protect and grow service in Eastern Canada. The existing agreement is to be extended by an additional four years to 2032, and the number of PAL Airlines aircraft covered by the agreement is expected to grow by five, to eleven.
“Air Canada is committed to regional connectivity. Our proposed agreement with PAL Airlines will enable us to protect existing services from Montréal to destinations in Québec and New Brunswick and support the overall growth of our regional network. Since PAL Airlines began operating for Air Canada Express in 2023, it has proven to be a strong partner, offering our customers in eastern Canada reliability, excellent customer service and a greater choice of flying options,” said Mark Galardo, Executive Vice President and Chief Commercial Officer, and President of Cargo at Air Canada.
“PAL Airlines is proud to work on expanding our agreement with Air Canada, growing our considerable presence in Eastern and Atlantic Canada by delivering flexible solutions that support regional connectivity for the Air Canada network,” said Calvin Ash, President of PAL Airlines. “This proposed extended arrangement with Air Canada reflects their confidence in our operation, supports the continued growth of our airline, and will solidify our presence in the regions which have supported our development.”
Air Canada and PAL Airlines have signed a letter of intent, which remains subject to final negotiations, to expand the existing arrangement between PAL and Air Canada and extend it until 2032. It would increase the agreement’s covered fleet by five additional Dash 8-400 aircraft to be operated on behalf of Air Canada on regional routes in Eastern Canada and Quebec.
About Air Canada
Air Canada is Canada's largest airline, the country’s flag carrier and a founding member of Star Alliance, the world's most comprehensive air transportation network. Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and Internationally on six continents. It holds a Four-Star ranking from Skytrax. Air Canada’s Aeroplan program is Canada’s premier travel loyalty program, where members can earn or redeem points on the world’s largest airline partner network of 45 airlines, plus through an extensive range of merchandise, hotel and car rental partners. Through Air Canada Vacations, it offers more travel choices than any other Canadian tour operator to hundreds of destinations worldwide, with a wide selection of hotels, flights, cruises, day tours, and car rentals. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using Air Canada’s passenger and freighter aircraft. Air Canada’s climate-related ambition includes a long-term aspirational goal of net-zero greenhouse gas emissions by 2050. For additional information, please see . Air Canada shares are publicly traded on the TSX in Canada and the OTCQX in the US.
About PAL Airlines
A proud member of the Exchange Income Corporation family of airlines, PAL Airlines is based in St. John’s, Newfoundland and Labrador and serves an extensive network of scheduled and charter destinations across Eastern Canada and Quebec. PAL Airlines has over 40 years experience in the aviation industry with a reputation built on safety, reliability, and exceptional customer service.
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