TORONTO — A travel agency owner is speaking out after he received notice from Air Canada about the airline’s new commission structure.
He received notification from Air Canada saying the airline’s commission structure is changing July 1. And for travel advisors, it’s not for the better.
“It’s 1% lower across the board,” he notes, “and absolutely no incentive to upgrade to premium cabins, unlike the other international carriers.”
Effective July 1, 2026, Air Canada’s updated commission structure is as follows …
North America & Sun
3% for Business / Premium Economy (J, C, D, Z, P, O, E and A), 3% for Economy (Y, B, M, U, H, Q, V, W, S, T, L, K and G), 2% for Economy Standard (classes with fare basis ending in TG), 0% for Economy Basic (classes with fare basis ending in BA), 3% for flight passes and 0% for Group Travel
South America
4% (online rate) and 2% (interline rate) for Business / Premium Economy (J, C, D, Z, P, O, E and A), 4% (online rate) and 2% (interline rate) for Economy (Y, B, M, U, H, Q, V, W, S, T, L, K and G), 0% for Economy Basic (classes with fare basis ending in BA), 3% for flight passes and 0% for Group Travel
Transatlantic
4% (online rate) and 2% (interline rate) for First / Business / Premium Economy (F, A, J, C, D, Z, P, O, E, N, G and R), 4% (online rate) and 2% (interline rate) for Economy (Y, B, M, U, H, Q, V, W, S, T, L and K), 0% for Economy Basic (classes with fare basis ending in BA, BV, BQ and BR), 3% for flight passes and 0% for Group Travel
Mainland China
4% (online rate) and 2% (interline rate) for First / Business / Premium Economy (Air Canada: J, C, D, Z, P, O, E, A; Air China: F, A, J, C, D, Z, R, G, E), 4% (online rate) and 2% (interline rate) for Economy (Air Canada: Y, B, M, U, H, Q, V, W, S, T, L and K; Air China: Y, B, M, U, H, Q, V, W, S, T, L and P), 0% for Economy Basic (Air Canada: classes with fare basis ending in BA), 3% for flight passes and 0% for Group Travel
Transpacific
4% (online rate) and 2% (interline rate) for Business / Premium Economy (J, C, D, Z, P, O, E, A), 4% (online rate) and 2% (interline rate) for Economy (Y, B, M, U, H, Q, V, W, S, T, L, K, G), 0% for Economy Basic (classes with fare basis ending in BA), 3% for flight passes and 0% for Group Travel
Air Canada’s memo says the airline values the partnership it has with the travel agency community and the critical role travel advisors play in connecting customers to Air Canada.
“The market environment in which we operate continues to evolve. To adapt to these changing conditions and ensure the long-term strength of our business, we must adapt and adjust certain elements of our commercial model.
“In this context, Air Canada will adjust the commission rate applicable to eligible agency ticket sales in Canada, effective July 1, 2026.
“We are providing you with notice of this change today to enable you to plan and adapt accordingly. We recognize that this change will result in lower commission amounts than under current terms. This was a difficult decision but a necessary step to ensure Air Canada remains strong, competitive, and positioned to deliver value across the entire travel ecosystem, as we embark into our New Frontiers plan. By funding our future with new aircraft, new premium products, a strong loyalty program and new destinations, we will provide growth opportunities for our mutual customers.”
The memo notes that Air Canada has a proven track record of consistently compensating travel agencies fairly: guaranteeing payments, as well as not recalling commissions during COVID and other major disruptions, enhancing the benefits of our Circle of Excellence program, and launching our AC&Me program for agents. “These actions reflect the value we place in your role and on our long-standing partnership,” says the airline.
“As market conditions continue to evolve, we look forward to building a sustainable future with our travel agency partner.”
