Air Canada Delays Boeing 787-10 and A321XLR Deliveries

Air Canada Delays Boeing 787-10 and Airbus A321XLR Deliveries to 2026

MONTREAL — Air Canada (AC) has announced significant delays in the delivery of its Boeing 787-10 and Airbus A321XLR aircraft, now rescheduled for 2026. This shift comes as the airline works to navigate ongoing supply chain challenges while continuing to implement its New Frontiers plan. The delays are expected to have a substantial impact on Air Canada’s expansion strategy, which focuses on enhancing long-haul routes.

Air Canada’s Challenges with Aircraft Deliveries

On May 9, 2025, Air Canada revealed during an earnings call that the anticipated delivery of its first Airbus A321XLR and Boeing 787-10 aircraft has been pushed back from the fourth quarter of 2025 to the first quarter of 2026. CFO John Di Bert attributed these delays to ongoing production issues faced by both Airbus and Boeing, marking a notable change from Air Canada’s earlier plan to receive the A321XLR as early as 2024.

The Airbus A321XLR, equipped with Pratt & Whitney PW1100G geared turbofans, along with the larger Boeing 787-10, plays a pivotal role in Air Canada’s New Frontiers plan aimed at expanding its international reach.

Fleet Expansion Plans

Air Canada has a total of 30 firm orders for the A321XLR, with options for an additional 10 units. These aircraft are intended for transatlantic and other long-range routes originating from Toronto. Additionally, the airline has 18 firm orders for the Boeing 787-10 and 12 options, which will help enhance capacity on popular routes such as Montreal (YUL) to London (LHR).

CEO Michael Rousseau emphasized the airline’s readiness to integrate these aircraft once delivered and noted that proactive management strategies are in place to mitigate potential delays through 2028. This approach aims to minimize disruption to Air Canada’s flight schedule in 2026.

Understanding Supply Chain and Production Issues

The delays in aircraft deliveries can be largely attributed to supply chain bottlenecks and production stabilisation efforts at Airbus and Boeing. Airbus has faced setbacks in certifying the A321XLR, which has pushed Air Canada’s timeline back significantly. According to Reuters, Boeing’s production issues with the 787-10 reflect a broader industry slowdown focused on quality control following previous grounding incidents.

Air Canada is also dealing with the impact of these delays on its operational capacity, which has led to the continued use of older A330 and 737 aircraft. Despite the challenges posed by U.S. tariffs on Canadian and European aircraft, Air Canada does not expect immediate delivery impacts, as these tariffs will primarily affect future schedules in 2027 and 2028.

Additional Challenges with A220 Groundings

The airline is also facing complications with its fleet due to the grounding of five Airbus A220-300s, which have been out of service for over 30 days due to engine recalls. CEO Mark Galardo has indicated that the peak of these groundings has passed and a gradual return to service is anticipated in 2025. The airline expects to receive eight A220 aircraft and three 737 Max 8s by year-end, which will bolster its regional operations and help accommodate the delays in the A321XLR and 787-10 deliveries.

Market Context and Financial Implications

Air Canada reported a C$102 million ($73 million) loss in Q1 2025, an increase from a loss of C$81 million in the same quarter of 2024. This financial strain is exacerbated by the aircraft delivery delays, which come at a time when the airline is facing significant costs for fleet renewal, estimated at $2 billion through 2029. However, a 6% growth in revenue driven by robust domestic demand in Toronto has provided some cushion against these losses.

The New Frontiers plan, which relies heavily on the A321XLR for cost-effective long-haul operations, remains crucial for Air Canada’s goal of regaining profitability by 2027. Notably, the challenges faced by Air Canada reflect broader industry trends, as approximately 40% of global carriers are grappling with similar delivery setbacks.

Join the Conversation

What are your thoughts on Air Canada’s delayed deliveries? Share your insights in the comments below, and check out related articles on the airline industry’s evolving landscape. For more information on Air Canada’s fleet expansion and recovery strategies, visit Air Canada’s official website or read additional coverage on Reuters.