Air Canada is rolling out free alcohol on flights in economy class to lure more passengers following a backlash against extra fees for baggage and legroom.
The Montreal-based carrier, now the only traditional North American airline offering complimentary beer and wine in economy on all routes, hopes to improve customer satisfaction without slashing pricier add-ons. Scott O’Leary, vice president of loyalty and product, explained that food and drinks have a huge influence on traveller happiness compared to other services.
It comes as North American airlines, including Air Canada, face criticism from passengers and lawmakers over extra charges. Social media outrage led to US and Canadian officials scrutinising fees for checked bags and seat selection in basic economy fares. O’Leary said that waiving alcohol costs is cheaper for the airline than eliminating baggage fees, which cover handling expenses. He said luggage charges cannot be easily waived or given to everyone without impacting the overall ticket prices.
Free Alcohol on Flights: A Competitive Edge for Air Canada
The perk is particularly targeted at routes, where US passengers connect through Canada to Europe or Asia. With transborder leisure travel dropping off in popularity due to trade tensions, the company hopes to woo potential passengers with this extra, especially for long-haul flights to Europe, which they hope will give them a competitive edge.
The position sets Air Canada apart from its competitors in US airlines like Delta and United, which usually charge for drinks on shorter flights or limit free alcohol to longer hauls.
Air Canada is struggling to recover after a challenging period, which included a four-day flight attendant strike in August that resulted in an estimated C$375 million loss to its 2025 operating income.
The airline has also introduced non-alcoholic options like Heineken 0.0, making it the sole North American carrier serving complimentary non-alcoholic beer inflight.
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