Air Canada Scraps 767 Freighter Plans

Daniel Fowkes
04 May 2024
· Aircraft 
· Freight 
Air Canada has scrapped plans to grow its 767 Freighter fleet with more conversions amid losses and significant drops in demand across 2023.

During Air Canada’s first quarter results for 2024, the company unveiled plans surrounding its cargo division.

Air Canada has scrapped the upcoming conversion of two Boeing 767 jets from passenger to freighters as part of a revised plan.

The Canadian flag carrier had been one of the many airlines looking to leverage the passenger-to-freight conversion of retired 767s for long-term gains. However, the airline has reduced its total fleet size from ten to eight.

However, considering recent performance, the company’s decision to reduce expectations for its freighter fleet certainly does not come as a shock.

In February, Air Canada announced that its cargo revenues had declined some 27% year over year. The company cited reduced demand. Factors such as passenger freighters were also seeing capacity reductions across the year.

Ultimately, however, softness in volume and yield in markets, as Air Canada described it, meant it struggled until the end of the second quarter.

In response to these drops across the 2023 calendar year, Air Canada was forced to readjust its forecasting on the 767. While some markets saw areas remain stable, others, such as the Pacific and Canada, saw significant drops.

Air Canada Cargo isn’t the only freight operator having to dial back growth plans after an incredibly busy start to the decade spurred on by the pandemic. These record-breaking results, however, have begun to slow, as several analysts warned.

Therefore, these companies need to make the necessary changes to ensure they don’t face negative repercussions. Within Canada, several other freight operators have dialled back their growth plans alongside long-term expectations for the sector.

Air Canada Also Drops Boeing 777F Plans

In 2023, Air Canada also cancelled orders with Boeing for 777-200Fs because of the continuing drop in airfreight demand.

Consequently, the latest announcement about the slowing of 767 conversions is the next step in responding to the adjusting operating environment.

Air Canada in 2023 responded to dropping airfreight demand by cancelling plans to acquire Boeing 777 freighters for its cargo division.

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