• Air Canada Cargo is expanding its freighter network to support a hub-and-spoke model that integrates dedicated freighters with belly capacity, positioning Canada as a transit hub linking Europe, Asia, and the Americas.
• With 60–70 percent of cargo moving in transit, network planning prioritises flexibility, long-term resilience, and balanced use of freighter, passenger, road feeder, and interline capacity rather than short-term market gains.
• Limited domestic volumes mean freighters primarily reinforce international transfer flows, while route decisions are guided by full-network connectivity, infrastructure, regulatory factors, and Canada’s geographic advantage for intercontinental transit.

Air Canada Cargo is expanding its freighter network to support wider intercontinental flows, reflecting a shift among carriers in North America to use hub-and-spoke models that integrate belly capacity with dedicated freighters. The Canadian market remains limited by volume, but its geographic position offers transit advantages for transpacific and transatlantic movements. This has positioned Canada as a transit hub linking Europe, Asia and the Americas, supported by road feeder services and interline agreements.

The carrier’s strategy follows a period of capacity rebalancing in the wider airfreight market. Demand on major East–West lanes has fluctuated throughout the past 12 months, with operators adapting schedules to match shifting volumes in consumer and industrial supply chains. Linked network structures allow carriers to re-route flows when trade or geopolitical conditions alter. According to Air Canada Cargo, between 60 and 70 percent of freight handled at its main hub moves in transit rather than origin–destination.

“The whole freighter programme was put in place to bring robustness to our network overall,” Matthieu Casey, Managing Director, Commercial – Cargo at Air Canada, explained, with Canada functioning more as “a hub than an origin–destination,” with most cargo transferring through its network rather than beginning or ending there. 

“Our international network, of course, is already quite deep, but this really gives us a lot more reach into the Americas, which really gives a great lend to everything we do on the belly network,” Casey continued.

Network flexibility and capacity planning

Carriers operating across six continents are adjusting uplift allocation to manage rate volatility and trade imbalances. Network planning teams are placing emphasis on balancing belly and freighter lift and evaluating long-term resilience. The integration of new aircraft deliveries is being aligned with existing passenger fleet deployments to support core trade corridors, rather than pursuing short-term niche opportunities that may not scale.

Air Canada Cargo has increased the number of freighter routes linking its three hub airports with markets in the Americas. The carrier also uses road feeder services and interline partnerships to expand its reach beyond its own aircraft network. This aligns with a broader trend where airlines augment airport-to-airport capacity with regional road networks to strengthen time-definite connections.

Decisions on new routes consider the full network rather than individual market yields. “We look at everything in terms of where the rest of our network is connected to and where the sister markets work well,” Casey outlined, noting that the business evaluates the long-term impact of any route change on customer flows.

“There’s maybe a lack of capacity or connectivity from other competitors, and for the market as a whole. Where we have an opportunity to really give an additional added benefit to our customer base, we’ve got an incredibly rich variety of network spots in the Americas that we can feed from into the remainder of our network,” he stated. 

Domestic role and future considerations

Canada’s domestic freight market remains steady, supported by regular passenger frequencies. However, the scale of domestic import and export flows limits long-term growth opportunities for freighter deployment. As a result, freighter operations are being used to support international transfer traffic and reinforce the airline’s position as a distribution hub. This model is consistent with strategies employed by other North American carriers that rely on transit flows to balance westbound and eastbound loads.

“Our network strategy team works really hard at trying to make sure that we balance everything. We obviously will look at our freighter network to make sure that we’re capitalising on the new opportunities that are coming about from new aircraft deliveries and new destinations on the passenger side,” Casey laid out. “All of that usually is done with quite a bit of focus on long term opportunities, not just short term opportunities. So we’re looking at a balanced approach to how we develop our network on the long term.”

Route evaluation processes include airport slot availability, handling cost structures and alignment with local infrastructure. Differences between airports influence schedule planning and the feasibility of adding freighter frequencies. Network planners also assess governmental and regulatory considerations when opening new lanes or increasing frequencies.

“We are the flag carrier for Canada. We have 25 different destinations that we feed from in Canada with thousands of frequencies on a weekly basis,” Casey said. “We want to definitely benefit the Canadian population and the international population that’s benefiting from what the exports and imports are into Canada.

“From London to Auckland, New Zealand, you’re better off and you’re quicker transiting through Vancouver from London into Auckland than you are through Singapore, Dubai or Hong Kong. So, it’s quite a good network that we have and we definitely make sure that we put that forward in everything that we do with our customers.”

Road feeder services provide additional reach, connecting regional markets to primary hubs. These overland links allow airlines to serve points that may not justify direct air services, while maintaining time control for shippers and forwarders.

“Infrastructure availability, slot availability and government rights are part and parcel of everything that goes into a route evaluation,” Casey said. “The road feeder service becomes a really good extension of what we do. All of that combined gives a lot of reach throughout the world.”