What is Customer Demographics and Target Market of Air Canada Company?

This segment is a significant driver of demand, with a notable interest in European destinations like the Mediterranean. The Aeroplan loyalty program, with over 8 million active members in 2024 and a 12% membership increase that year, is key to engaging these customers.

Corporate travel has shown a strong rebound, with demand described as 'pretty stable' by Q2 2025. Premium cabin revenues, which include business and premium economy, contributed 30% to passenger revenue growth in Q1 2024 and saw a 5% increase in Q2 2025.

While not detailed in terms of specific demographics, cargo services represent another key customer group for the airline. This segment supports the movement of goods, complementing passenger travel operations.

In 2024, there was a strategic focus on increasing capacity to Asia-Pacific markets, particularly China. This initiative aims to capture growing leisure and business travel demand in these high-potential regions.

In 2024, a substantial 86% of Air Canada's capacity was directed towards the North American market. This highlights the airline's strong focus on serving routes within Canada and to the United States, reflecting a core segment of its operations.

Air Canada has strategically broadened its international reach, introducing new routes to destinations like Stockholm, Naples, and Porto in 2024. The airline also resumed services to Beijing and Tel Aviv, capitalizing on recovering global travel demand.

Approximately 73% of Air Canada's 2024 passenger revenue originated from trips that began or ended outside of Canada. However, a 11% year-over-year drop in passenger revenues from the U.S. transborder segment in Q2 2025 prompted a strategic shift in capacity towards higher-demand international services.

For 2025, Air Canada continued to add service to international cities such as Naples, Porto, Prague, and Manila, while reintroducing routes to Lima and Rio de Janeiro. The airline plans to increase capacity to Asia-Pacific markets, with a specific emphasis on China, despite 2024 international seat capacities to Asia and the Middle East remaining suppressed compared to 2019 levels.

The Aeroplan loyalty program is central to Air Canada's customer acquisition and retention efforts. In 2024, the program saw a 12% increase in membership, reaching over 8 million active members. This program offers extensive earning and redemption opportunities across numerous airline and non-airline partners, fostering continued customer loyalty.

Investments in digital platforms, including mobile app upgrades and biometric boarding at select airports, streamline the passenger journey. These technological advancements aim to improve overall customer satisfaction and reduce processing times, contributing to a more positive travel experience.

Air Canada's strategy includes expanding its network and enhancing the customer experience to drive long-term value. The company reported a 5% increase in premium revenues in Q2 2025 compared to the previous year, indicating success in attracting higher-value travelers. This growth aligns with the Mission, Vision & Core Values of Air Canada, which emphasizes delivering superior service.

The airline strategically shifts capacity to higher-demand international routes, particularly in Asia and Europe, adapting to market conditions. 'Sixth-freedom traffic,' which involves connecting long-haul international routes via Canadian airports, saw a 17% rise in revenue in Q2 2025, highlighting the effectiveness of this network strategy.