Business travel revenue at Air Canada increased year over year in the fourth quarter of 2025, although weakness continues in US transborder volumes, according to executives speaking on an earnings call.

Outbound demand from Canada to the US slowed through 2025, “primarily driven by ongoing concerns regarding tariffs and related geopolitical uncertainties,” according to the carrier. 

Mark Gallardo, chief commercial officer, said, “We leveraged our diversified geographic exposure to pivot capacity to areas of strength, such as to Canada and the Atlantic in the summer months, fully mitigating the impact from reduced US-Canada demand.”

For the full year, the US transborder segment declined more than 10%, “reflecting a broad softening in demand beginning in the second quarter of 2025, compounded by the effects of the August labor dispute,” according to the carrier. A three-day strike last August by Air Canada’s flight attendants resulted in the cancellation of more than 3,200 flights.

Corporate revenue “accelerated” in the latter part of the year, “and was another sign of progress, increasing 8% in the fourth quarter from a year ago,” Gallardo said. He added, “We restored A220 schedules, achieved corporate growth in our long-haul flying and kept working to stay competitive while building loyalty with business travelers.”

In the spring, Air Canada will begin flights from Billy Bishop Airport in downtown Toronto to major business centers in North America, Gallardo said.

The carrier also is seeing “a lot of corporate demand growth on the North Atlantic,” Gallardo said. He added, “We’ve seen almost a 30% increase in the amount of corporate traffic going to Europe and the Pacific, and we attribute part of that to Canada looking to diversify trade corridors.” Gallardo did not say whether the 30% increase was year over year for the quarter or the full year; however, Air Canada increased its capacity to the Atlantic region by 4.9% for the quarter, and to the Pacific region by 9.5%.