Air Canada is planning some major changes to the composition of its fleet, and it particularly impacts the company’s low cost subsidiary, Rouge. While the basics of this were revealed in late 2024, Air Canada has now announced the timeline for these changes, and what it means for the passenger experience.
In this post:
Air Canada Rouge will transition from A320s to 737s
Rouge is Air Canada’s low cost subsidiary, which primarily operates in leisure markets. As it stands, Air Canada Rouge operates a fleet of 36 Airbus A320-family aircraft, comprised of A319s, A320s, and A321s. Well, that fleet will completely change next year.
Air Canada currently has a fleet of 47 Boeing 737 MAX 8s, with five more of the jets on order. This is the carrier’s single largest narrow body aircraft type, in terms of the number of frames currently in the fleet. The plan is that in 2026, Air Canada will transfer all 737 MAXs to subsidiary Rouge, meaning that there will be no more 737s in the mainline fleet.
It’s worth noting how much this project was moved forward as well — initially this was all supposed to happen by 2028, while now it’ll happen entirely in 2026, so that’s impressive speed.
The company explains that the 737 MAX has 20% lower costs per available per mile compared to the current A320-family aircraft that Rouge operates, so this will enhance Rouge’s competitiveness in leisure markets. Rouge will also open a crew base in Vancouver, in hopes of the brand expanding a lot more on the West Coast.
So, how will the 737 MAX configurations change when the planes transition from mainline to Rouge? As it stands, Air Canada’s 737 MAX 8s feature 169 seats, including 16 business class seats and 153 economy seats.
Once they move over to Rouge, the 737 MAX 8s will feature 177 seats, including 12 business class seats and 165 economy seats. In other words, one row of business class seats is being eliminated, so that two rows of economy can be introduced (with a slight reduction in pitch in parts of the rest of the cabin, though all seats will maintain a recline function).
This will actually represent a very nice upgrade for the Rouge fleet in terms of passenger experience, since the planes will maintain seat back televisions, and there will also be fast and free Wi-Fi for Aeroplan members (Air Canada Rouge planes currently don’t have seat back entertainment).
Given the size of Air Canada’s 737 MAX fleet, this also means that the Rouge operation will be growing significantly in the coming years, since the fleet should go from around 36 jets, to well over 50 jets.
Air Canada is transforming and streamlining mainline fleet
When Air Canada Rouge transitions to the 737 MAX, the plan is to retire the ex-Rouge A319s, and to convert the A320s and A321s into mainline aircraft. This will be good news as well, since it means these planes will be getting Air Canada’s latest cabin standard, which has already been installed on many mainline A320-family aircraft.
So, what can we expect from Air Canada’s overall mainline, narrow body fleet, in the coming years?
- Air Canada has a fleet of 37 Airbus A220-300s, with another 28 on order
- Air Canada has a fleet of 17 Airbus A320s, and they’ll be joined by five ex-Rouge A320s
- Air Canada is otherwise focusing on the Airbus A321; the airline has 20 of these in its fleet, and they’ll be joined by 10 ex-rouge A321s
- Air Canada has 30 Airbus A321XLRs on order, which should be delivered starting in the coming months; while these will partly be used domestically and for transborder flights, they also have the range to operate some long haul flights
All-in-all, I’d say these updates are positive. Air Canada Rouge passengers will get a better experience, while mainline passengers will also get a better experience thanks to the newly updated cabins on the ex-Rouge aircraft.
On top of that, Air Canada Express aircraft operated by Jazz will also be getting new cabins starting in 2026, including high speed Wi-Fi. Air Canada is putting a huge amount of effort into fleet consistency here, and the pace at which the airline intends to complete all these projects is nothing short of amazing (assuming it can stick to this schedule).
Here’s how Mark Nasr, Air Canada’s EVP and Chief Operations Officer, describes these updates:
“When customers step onto an Air Canada aircraft, they should instantly feel a sense of comfort, care, and pride. Supported by award-winning service from co-workers across the company, this renewal program is about delivering that feeling consistently, across every flight. Whether traveling for business, leisure, or something in between, every update is designed with our customers in mind. Notably, this program includes an entirely new Air Canada Rouge product with cutting-edge in-flight entertainment, Fast, Free Wi-Fi, and seats that recline for all customers.”
Bottom line
In 2026, Air Canada plans to fully transfer its 737 MAX fleet to low cost subsidiary Rouge. With this, we’ll see Rouge going from being an all-Airbus operator to being an all-Boeing operator, and in the process, the Rouge fleet will be growing considerably. Meanwhile the mainline narrow body fleet will consist exclusively of Airbus aircraft, with the ex-Rouge planes getting the latest Air Canada cabin interiors.
This all seems logical enough, as the company wants Rouge to have a competitive cost structure, and wants to grow it.
I’d actually say this is largely positive, given that Rouge 737 MAXs will have seat back TVs (unlike the A320s), while the ex-Rouge planes will be getting new interiors. It’s also great how much Air Canada is aiming for product consistency across aircraft.
What do you make of Air Canada shifting its 737 MAXs to Rouge?
The most consistent impact will be the loss of loyal customers and the impossibility of gaining either status or benefitting from current status. Already impossible to use eUpgrades will be even further reduced from 16 seat j cabins. These are already tiny compared to the 24-seat J cabins in 1990s on the A320 and in the 2000s on the A321.
Also impossible to find competitive fares in premium cabins on direct flights when only...
The most consistent impact will be the loss of loyal customers and the impossibility of gaining either status or benefitting from current status. Already impossible to use eUpgrades will be even further reduced from 16 seat j cabins. These are already tiny compared to the 24-seat J cabins in 1990s on the A320 and in the 2000s on the A321.
Also impossible to find competitive fares in premium cabins on direct flights when only 12 seats are available, and prices sky rocket when only 2 or 4 are sold.
What do I make of this? Air Canada trying to squeeze the last drops out of its own lemons, while doubling and tripling airfares. Nothing low cost or competitive about this.
Comfort, care and pride? Is he joking? The FAs are indifferent at best and the plane interiors are often dirty and falling apart. I feel none of that when boarding an AC plane. I usually feel regret at not having been able to find a ticket on a better airline. And I don’t expect AC will spend much to refurbish the rouge planes before they join the mainline fleet. These will remain uncomfortable and densely crowded.
Wondering if that means the YHZ-LHR daytime flight will be operated by Rouge... That would be an interesting move.
Okay, I just won't fly AC mainline after next year. Down with Eurocrap.
At the moment, I'm not a fan of this as I prefer their 737MAX's with the huge overhead bins and modern interiors over some of their very old A320 family aircraft. Case in point I literally just flew on an old AC airbus who's IFE screen didn't work for me. But if the A321 family can be modernized to equal standard, I guess it's okay.
What about the flight crews? will they lose seniority or are they still AC mainline pilots?
Makes sense, I'd imagine leisure routes for Rouge are longer on average than mainline AC narrow body routes. Use those capital-intensive planes on those routes where they'll spend less time per day turning around at airports and where you can take more advantage of the fuel efficiency. The older A320's are probably better for the shorter domestic and transborder business routes.
Some corrections: 14 ex-rouge A321s will be transferred, not 10. 7 ntu-Lynx B737 MAX (all-Y) will be withdrawn by Q3 2026.
it is equally significant that AC is trimming its 787 order book even as Boeing announces increased takeoff weights and range because AC wants maximum range aircraft available.
They are considering the 35K and the 778 which raises all kinds of questions.
I read about the reduction by 4 of their 787 order, but where did you see they’re looking at the 777/350?
Will we be getting an Article on westjet’s latest route announcement which includes a new transatlantic daytime service
Great news if you are looking to avoid this particular aircraft
It really sucks to be AC elite nowadays
There will be no upgrades on these for any of the sad sack OPM flyers whose boss only pays for Y with only 12 seats on the plane.
So basically Rogue's business model is similar to Delta's Song back in the day.
Ben, did you see the news that Air Japan will cease operations in 2026? Maybe I missed the post. Sorry if that’s the case.
@ Endre -- I did indeed, thank you!
https://onemileatatime.com/news/ana-ending-airjapan-subsidiary/
(I know there's a lot of content, so it can be hard to keep track of)