Deliveries of its new Airbus A321neo extra-long range aircraft will begin in the first quarter of 2024, and are due to be completed by Q1 2027.
Fifteen of the aircraft will be leased from Air Lease Corporation, and five from AerCap. The other six will be acquired directly from Airbus.
Air Canada also has an option to purchase an additional 14 A321neo XLR aircraft from Airbus between 2027 and 2030.
The Canadian flag carrier could deploy they on transatlantic routes to the UK, potentially to extend its reach into the regions and compete more forcefully on price with other transatlantic rivals.
The aircraft have range "to serve all north American and select transatlantic markets", said Air Canada. They are projected to offer fuel efficiency improvements of up to 23% with a range of approximately 8,700km and flight time of 11 hours.
An engine manufacturer for the aircraft is yet to be announced.
Each A321XLR can accommodate 182 passengers in 14 lie-flat Signature Class seats and 168 economy seats.
Air Canada president and chief executive Michael Rousseau said the deal was an important part of its strategy to boost customer experience, advance its environmental ambitions and improve overall cost efficiency.
"This order also shows that Air Canada is emerging strongly from the pandemic and is ideally positioned to grow, compete and thrive in a reshaped global aviation industry," he added.
The order will also allow Air Canada to replace a number of older, less fuel-efficient aircraft. It projects the A321XLR it will burn up to 17% less fuel per seat compared with previous generation narrow-body aircraft on typical transcontinental flights.
As of 31 December 2021, Air Canada had a combined 214 aircraft in its mainline and Air Canada Rouge fleets, including 136 single-aisle, narrow-body aircraft.
