Air Canada to Extend and Expand Commercial Agreement with PAL Airlines to 2032

January 9, 2026 ctn_admin

Air Canada and PAL Airlines announced today ( January 08, 2026) 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.