Aircraft Scrapped, Air Canada Record Breaking & Delta News

In today's industry recap, Air Canada is breaking records. Embraer has cancelled a planned new aircraft and there's updates on Delta. I want to begin with Air Canada who expect 2026 to be record-breaking with more aircraft than ever delivered over a 12-month window. Speaking with analysts during its earnings call, the company said it expects to take on 35 planes in 2026 based on their current forecasts and thanks to communication with plane makers. If manufacturers are able to stick to this figure, this for Air Canada would be record-breaking as in the entirety of its history, it has not received this many aircraft in such a short period over a calendar year. For Air Canada, however, the new planes that will be delivered are not just fundamental to the renewal of the fleet, but they will also help shift the needle on network optimization efforts. The Canadian flag carrier has been clear right throughout 2025 that it hopes to diversify its traffic away from such a reliance on trans-border connectivity. While this area will remain, there still needs to be diversification. For Air Canada to diversify, it needs to take delivery of more planes, and 2026 is finally being earmarked as the year deliveries will pick up, allowing for greater optimism finally about reaching new markets. The diversification of traffic also aligns with the Canadian government, which following continued political pressure is looking to change its strategy in global economic relations, therefore expanding outward, away from just relying on trans-border ties. Certainly that is not all of Air Canada's operation, but it represents a large chunk of it. For example, Air Canada has long been interested in returning to Melbourne, Australia. Airport executives in Vancouver and Melbourne are also very keen on making this happen. With every latest quarterly PowerPoint presentation in terms of future routes, Melbourne is always there, but aircraft limitations have delayed this relaunch, and all airlines certainly face this to some extent. I'm sure we could put something similar on any other company that there are routes they want to launch, but they don't have the aircraft. In the case of Air Canada, they are going to get the aircraft, they've just been eagerly awaiting them, being very patient. With more 787s expected, Air Canada will finally have room to expand its international network, and with that, redeploy some of its existing aircraft towards cities that say may have been targets but were not previously feasible. Over to the next story. An Embraer is saying goodbye to a prospective new aircraft after cancelling an ongoing study. The cancellation centres on the next-generation turboprop that was under study. This is ultimately a program that has effectively been suspended for some time after internal discussions identified that engine technologies had not yet been developed at a rate to make this program feasible. According to the planemaker's CEO, this turboprop, which was hoped to launch this decade before being effectively put on the shelf, has now been cancelled, the confirmation arriving during Shock Horror recent earnings press conference. The CEO is clear also as well about the decision, saying there are no plans to continue in this direction, with the initiative being firmly cancelled, going once more as far as saying this is not just a suspension, but a firm end to these studies. The news on this followed the business confirming revenues that totaled US$2 billion in the third quarter, representing an all-time high for the third quarter and an 18% jump, driven by impressive performance for the programs. This Embraer turboprop, which was being studied, emerged at the beginning of the decade when the manufacturer released proposed designs featuring wing-mounted propellers. Over the years that followed, the Brazilian planemaker sought to adapt the design with tweaks to increase feasibility, hoping that the development of this jet would seat 70-90 passengers in the end and truly bring new life to a rather depleting turboprop market. See despite Embraer hoping to bring back life to this industry which has ultimately gone quiet, we've seen more and more airlines opt for alternatives. One of the biggest reasons the program was initially suspended as I touched on was the struggle internally to define the power direction, especially with a turboprop as advancements in engine technology were not at the level the Brazilian manufacturer would have ideally wanted and for now it is goodbye to this program. Over to the final story where Delta has confirmed exciting news for its cargo network across the United States. The US carrier in partnership with the Utah Inland Port Authority and Salt Lake City will invest $18 million to develop what is described as a brand new state-of-the-art air cargo facility at Salt Lake City International Airport. The facility will be made possible through the complete renovation and modernization of a former United States Postal Service building. It will help replace the current air cargo home. For the airline and the city itself, this is said to be a game-changing investment that will elevate cargo operations in the region and subsequently better serve customers in not just Utah but beyond. Under current forecasting and permitting, with no scheduling mishaps, the new facility will open in 2027 and feature warehousing, shipping and receiving, ample administrative space with a customer lobby and refrigerated storage. With thanks to the investment in refrigerated storage more specifically, Delta will have better access to support goods such as perishables and pharmaceuticals which are high value. For Delta, selecting Salt Lake City International Airport was a logical choice given that the airline is the largest global premium carrier here with 270 peak-day flights to more than 100 destinations around the world and that includes real popular markets such as London and Paris. The latest investment shows that this partnership between the airline, airport, and city will keep growing as the years continue. The last 12 months saw many new non-stop routes, additional gates, and a state-of-the-art pilot training center all open up. So, you certainly feel that a new cargo facility is a logical step to support the investment in infrastructure and the local business. From Lima to Seoul this year, new routes have been added as they look to bring additional connectivity to the city and like I said this is going to continue as that investment grows. Delta realizing that there's a great opportunity here in Salt Lake City and it wants to be a part of that. Let me know your thoughts down below in the comments that will conclude today's industry recap. Thanks for your support, take care, and I'll see you tomorrow.