Air Canada pivots south with Cancun Flight expansion and new Montreal–Guadalajara nonstop

Air Canada is shifting capacity toward Mexico, a move that includes a new year‑round Montreal–Guadalajara nonstop and stepped-up Cancun schedules that underline a broader network pivot. The carrier’s announced changes — including an 18% year‑over‑year capacity boost to Mexico this summer — reflect demand and trade considerations as Canada reallocates flights away from the U. S.

18% increase and a new year‑round Montreal–Guadalajara route

The airline said it is adding 18% more seat capacity to Mexico this summer versus last summer, describing the move as a strategic expansion that supports "Canada's trade diversification. " The plan includes a new year‑round nonstop between Montréal–Trudeau International Airport and Guadalajara International Airport, positioned as a route the airline expects to sell across multiple demand cycles rather than as a one‑season service.

Air Canada also listed specific capacity adjustments described as increases: "Four additional flights, increasing to 11 weekly"; "One additional flight, increasing to four weekly"; "Four additional flights, increasing to 11 weekly"; and "One additional flight, increasing to twice‑weekly. " The carrier characterized the overall package as "an 18% year‑over‑year boost. "

Frequency gains and the Cancun Flight surge

Route details show material frequency gains on core Mexico links. Montreal–Cancun will rise from seven to 11 weekly flights, Toronto–Monterrey will move from three to four weekly, Vancouver–Mexico City will increase from seven to 11 weekly, and Vancouver–Puerto Vallarta will go from one to two weekly. The new Montréal–Guadalajara service is slated to begin on June 2, operating three times per week.

Air Canada said the summer expansion will lift its offering to 10 daily flights from its three hubs — Montreal, Toronto Pearson and Vancouver — to five Mexican cities, totaling about 1, 700 one‑way seats per day during the summer peak.

Government and business voices frame the move as trade diversification

The carrier’s announcement was accompanied by statements tying aviation links to commercial strategy. Dominic LeBlanc, the minister responsible for Canada‑US Trade, Intergovernmental Affairs, and One Canadian Economy, said: “As Canada leads one of the most important Team Canada Trade Missions in Canadian history, we are focused on helping Canadian businesses reach new markets and create new partnerships. Announcements like this by Air Canada will further strengthen Canada‑Mexico ties and enable our two countries to do even more business together. ”

Candace Laing, president of the Canadian Chamber of Commerce, added: "Canadian companies are looking to diversify trade and build new partnerships, so these direct connections with strong trade partners matter. " The airline framed the schedule changes as supporting Canada‑Mexico economic ties and trade diversification.

Tariffs, frayed ties and a drop in U. S. travel demand

The shift toward Mexico began about a year earlier, when the Trump administration imposed tariffs on Canada, prompting Canadians to significantly cut trips to the U. S. With ties described as remaining frayed, Canadian carriers moved capacity away from the transborder market and toward Mexico and other markets.

That reallocation coincided with measurable declines in transborder performance in 2025: U. S. transborder revenue fell 10. 4% year‑on‑year in 2025 on a 9. 6% decline in capacity, with traffic down 12%. Across carriers, WestJet reduced U. S. capacity by 16. 7% for summer 2026 compared with summer 2025, and Air Transat and Flair Airlines also scaled back their U. S. exposure. The changes are described as more than seasonal adjustments for snowbirds — a capacity reallocation driven by shifting demand, economics and politics.

Latin America strategy, sixth‑freedom gains and winter 2026–27 plans

Air Canada framed Mexico growth as part of a broader Latin America strategy. Mark Galardo, the airline’s executive vice president, Chief Commercial Officer and head of cargo, said: “Since 1954, Mexico has been an important part of our global network, and this summer, Air Canada’s added capacity will further reinforce the longstanding tourism and commercial ties between our two countries. ”

Management highlighted stronger performance outside the U. S.: sixth‑freedom revenues rose 10% in 2025 from 2024, reaching record levels, and Latin America was described as a "very broad geography" and a structural opportunity to use Canadian hubs to connect Europe and Latin America rather than simply as a diversion of U. S. capacity.

Looking beyond summer, Air Canada’s winter 2026–27 plans include the resumption of Toronto–Quito service in December, earlier restarts of Lima and Rio de Janeiro, and expanded service from Montreal to Santiago and Bogota. The summer push also arrives ahead of the 2026 FIFA World Cup, which will be jointly hosted by Canada, Mexico and the U. S., a timing that could influence cross‑border travel flows.

Network scale and market shares in recent seasons

Seats data from summer 2025 show Air Canada offered about 735, 200 two‑way seats between Canada and Mexico across 25 nonstop routes, representing a 29. 9% share of capacity; WestJet led that market with 34. 8% and Air Transat accounted for 12. 1%. Despite softer transborder demand, Air Canada planned to offer 9. 57 million two‑way seats between Canada and the U. S. for the coming summer, up from 8. 85 million a year earlier — a change that would lift its share of the Canada–U. S. market from 38. 9% to 42. 8% for the summer season.

This package of new year‑round flying, frequency increases and broader Latin America schedule moves signals a sustained tilt toward Mexico and beyond as Canadian carriers reallocate capacity in response to the evolving demand and trade picture.

Updated on Thursday, February 19, 2026 to include new data; originally published Tuesday, February 17, 2026.