Air Canada Expands Regional Service in Eastern Canada with PAL Airlines

Air Canada is strengthening its regional network in eastern Canada through an expanded commercial agreement with PAL Airlines, even as Canadian carriers reduce capacity to the United States.

Under the proposed deal, PAL Airlines would operate additional Air Canada Express regional flights from Montreal to smaller destinations across Quebec and New Brunswick. The agreement would extend the current partnership by four years, through 2032, and increase the number of PAL-operated aircraft from six to eleven.

Air Canada says the expanded partnership will help protect existing regional routes while supporting long-term network growth. PAL Airlines has been operating flights for Air Canada Express since 2023, using Dash 8-400 turboprop aircraft on short-haul routes, and has established itself as a reliable regional partner.

PAL Airlines also sees the extended agreement as a key opportunity to support its own growth and strengthen its presence in the communities it serves across eastern Canada. The proposed deal is still subject to final negotiations.

The announcement follows recent government support for PAL Airlines, with Ottawa and the Maritime provinces committing $9 million to fund twice-daily regional flights connecting Halifax, Sydney, Charlottetown, Fredericton, and Moncton. The three-year pilot program aims to reverse the long-term decline in regional air service between Maritime airports following the pandemic.

Together, the expanded Air Canada–PAL partnership and government funding highlight a broader effort to rebuild and stabilize regional air connectivity in eastern Canada.