Air Canada Awaits A321XLR Deliveries, Eyes Long-Haul Expansion

Air Canada continues to await the delivery of its first Airbus A321XLR, which the airline believes has the size, range and efficiency to enable profitable flying on long-range routes where it struggles to fill widebody aircraft year-round.

The Montreal-based airline originally was supposed to receive its first A321XLR in the 2024 first quarter. The OEM's first delivery of the aircraft went to Iberia in the 2024 fourth quarter.

Air Canada is hopeful of receiving the first of 30 A321XLRs it has on order in the 2025 fourth quarter, but is not counting on it. Speaking at the Routes Americas 2025 conference in Nassau, Bahamas, Air Canada Vice President for Network Planning and Scheduling Alexandre Lefevre said his “confidence level is limited” regarding aircraft delivery dates.

“We have been waiting for the XLR for quite a long time and we're still waiting,” he explained. “So our planning process includes more buffer [than in the past]. If the manufacturer tells us the aircraft will be here in October … I usually plan [to put it into service the following] March.”

Lefevre noted delivery delays are hardly exclusive to Airbus. “It's across the whole industry,”  he said. “It's not only the manufacturers, it's the suppliers, it's the engine manufacturers. Everybody's struggling now. We are struggling with our own workforce issues … Post-COVID has been tough for everybody, so not pointing fingers.”

When the A321XLR is delivered, it will bring new network possibilities for Air Canada. The airline is also planning to debut its new business-class product on the aircraft. Its A321XLRs will be configured with 182 seats, including 14 lie-flat seats in business class.

The narrowbody aircraft has a range of 4,700 nm (5,408 mi.), which will enable it to fly long-haul routes such as New York-Rio de Janeiro, New York-Munich and Toronto-Sao Paulo.

“In Canada, we see a very good fit with the XLR,” Lefevre said. “We've got a lot of markets that are pretty small in terms of demand [year-round]. Just an easy example: Montreal. There are markets from Montreal that today we can serve them with 250-300 seats. But obviously, that works three months, four months a year. So how do you maintain that year-round presence?”

He said the A321XLR “is a tool” that will allow flights to be “available year-round on those markets,” building brand awareness for Air Canada.

He noted the aircraft will also be used on North America routes. “That's what I like about the XLR,” Lefevre said. “On the stage-length of 5 hr., you still have a product that has a good cost base.”

In addition to putting the aircraft on existing routes, he also foresees a “whole bunch of new markets opening up.”

Veronica Paddock, Airbus marketing director for fleet and network planning, told the Routes Americas conference the A321XLR’s range and capacity will enable new routes. “Just to give you an idea, on the very longest routes, it could fly up to 10 or 11 hr.,” she said. “We're really looking at the potential to fly very long-range routes with the aircraft. A key benefit is being able to open new markets on these thin routes.”

She added that the aircraft can "also can be used on existing routes where perhaps an airline is operating with a widebody at a lower frequency, perhaps less than daily. The airline can then be able to bring the frequency up to daily by operating with the A321XLR. Already, that's what we have seen with Iberia, which has introduced the A321XLR flying between Madrid and Washington Dulles. Iberia has chosen to operate the route at a higher frequency.”

She said the aircraft can also complement a widebody aircraft operating on a route, with a 2X-daily service potentially being flown daily with each aircraft. “In business markets where you're looking to attract high-yield passengers, then offering this kind of flexibility with enhanced frequency levels can be very powerful for your airline,” Paddock noted.