Air Canada has sold a 25% stake in its Aeroplan loyalty program to Blackstone and Canadian pension fund La Caisse for C$2 billion, valuing the program at roughly C$8 billion. The carrier says it will retain control and use the proceeds to reduce debt.

The transaction closes a remarkable cycle for Air Canada. It spun Aeroplan off in 2003, launched a replacement scheme, then bought Aeroplan back from Aimia in 2019 for US$323 million. Seven years later, a quarter of the business fetched $2 billion. Blackstone and La Caisse rarely invest billions without seeking influence, so governance questions around the program will persist even if Air Canada expects no operational disruption in the near term.

The sale landed in the same week as Air Canada's second-quarter results, and the timing helped the optics. The airline posted a C$215 million (about US$155 million) loss, a sharp reversal from the C$418 million profit it recorded in the same quarter last year. Revenue reached a record C$6.2 billion, but expenses hit a record C$6.4 billion. Capacity grew just 0.3%. Fuel costs jumped 50% year-over-year to C$1.7 billion, and the carrier recovered roughly half of that increase through fares. It ended the quarter with about C$7.5 billion in cash and equivalents.

Delta doubles down on Austin with Paris link

Delta Air Lines will launch daily A330-900neo service between Austin and Paris next March, operating through the IATA summer season until October. The aircraft carries 29 Delta One seats, 28 Premium Select recliners and 224 economy seats.

The route becomes Austin's fourth transatlantic destination and the first operated by a US carrier. British Airways serves London Heathrow, KLM serves Amsterdam and Lufthansa serves Frankfurt — one carrier per alliance. Delta is also adding nonstop Austin–San Diego service on April 12, competing directly with Alaska and Southwest, converting winter-only Austin–Cancún flying to year-round operation, and adding a second daily Austin–San Jose frequency after the first launches this October.

American reshuffles leadership while rivals bank profits

American Airlines, now settled in third place among the big three US carriers, announced a broad leadership reorganization under CEO Robert Isom. John Bendoraitis, former Spirit COO, will run technical operations. Chief Commercial Officer Nat Pieper adds marketing, branding, advertising and partnerships to his portfolio. Chief Customer Officer Heather Garboden takes over reservations and service recovery, and JC Gulbranson adds airports and planning to his responsibilities.

Departures include Chief Communications Officer Ron DeFeo, Senior VP for Technical Ops Kevin Brickner — with the carrier since joining US Airways in 1996 — and Nate Gatten, EVP for American Eagle and Governmental Affairs. Caroline Clayton takes communications; Steve Neuman oversees government affairs and sustainability. Garboden, Gulbranson, Clayton and Neuman join the senior leadership team.

The restructuring comes as American targets break-even in 2026, a benchmark its two main rivals have long since cleared.

airBaltic cuts A220 fleet to 36

airBaltic unveiled a restructuring plan that shrinks its A220-300 fleet from 54 aircraft to 36 by year-end, abandoning a previous plan to expand to 100. Riga remains the main hub, with secondary bases and focus cities operating what the carrier calls "selected point-to-point services."

The Latvian carrier has been hit hard by the closure of Russian airspace, high fuel prices and a precarious cash position. CEO Erno Hildén is seeking EUR225 million in interim financing. The airline says it can maintain capacity despite the fleet reduction by cutting its extensive wet-leasing operation for other carriers, including Lufthansa Group. Much of that wet-lease demand is summer-only, which limits the profitability of the aircraft involved.

Briefly

Air Canada plans to begin service to Lagos next year. Air Montenegro added a leased E-195. Airlink's first long-haul destination will be Doha via a Qatar Airways codeshare. Allegiant added five new routes. Belavia is acquiring three 737-800s. Cabo Verde Airlines received $4.7 million in funding to continue operating. Etihad is adding four weekly winter-only flights to Gothenburg. GOL named André Fehlauer as CEO, replacing Ceslo Ferrer next month. Israir awaits FAA clearance to serve North America after approval from its home regulator. ITA Airways reported a second-quarter operating profit before currency impacts. Lufthansa and its pilots agreed to mediation. Riyadh Air begins three weekly Bangkok flights next month. Royal Brunei expanded its Turkish Airlines codeshare. Ryanair will exit Niš, Serbia in early Q4. S7 suffered its second 737 runway overrun in six weeks. Southwest added two CEOs to its board. T'way detailed a hybrid model for Trinity Airways. Wizz Air is opening a base in Brasov, Romania.

Whether airBaltic secures its EUR225 million and whether Blackstone's investment reshapes Aeroplan's economics will define the storylines to watch through the fall.