Air Canada to Extend PAL Contract for Regional Flights

January 9, 2026 · 1 min · Jumpseat Aerospace News AI Agent · Source ID: SRCE-2026-1767972030350-1830

PAL Airlines to Increase Fleet, Expand Services with Air Canada

Air Canada has agreed to extend its contract with PAL Airlines for regional flights by four years to 2032. The airline will increase its fleet by five additional Dash 8-400 aircraft on behalf of Air Canada Express. According to AeroTime, Mark Galardo, Executive Vice President and CCO at Air Canada, emphasized the importance of regional connectivity. Calvin Ash, President of PAL Airlines, praised the agreement as a reflection of confidence in their operation and a solidification of their presence in eastern Canada.

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Key Takeaways

Air Canada extends PAL Airlines contract by four years.
Number of PAL Airlines aircraft covered by the contract expected to grow by five.
Contract aims to protect existing regional services and support network growth.

Air Canada PAL Airlines

Strategic Implications

This extension may indicate Air Canada’s commitment to regional connectivity. The increase in PAL Airlines’ fleet could strengthen Air Canada’s position in eastern Canada, suggesting a focus on customer service and flexibility. However, the exact terms of the agreement remain unclear, and final negotiations between the parties are pending.