Source: Business Traveller (Story by Lauren Smith)
Air Canada’s latest move swaps baggage goodwill for onboard generosity—offering free beer and wine in economy class as it fights back against traveler frustration and falling U.S. traffic.
As of October 1, Air Canada is serving complimentary beer and wine in economy class on every flight as it tries to win over passengers alienated by additional fees.
The new offering will make Air Canada the only North American legacy carrier to serve complimentary alcohol in economy class on all flights, Scott O’Leary, vice president of loyalty and product at the airline, told Reuters.
“Food and beverage just tend to have a disproportionate impact on customer satisfaction, more than any other attribute of our products and services,” he said.
Drinks to offset U.S. travel slump
Air Canada began rolling out the free alcoholic beverages in economy cabins on September 1 and now says they’re available on all flights from Air Canada, its low-cost leisure subsidiary, Air Canada Rouge, and Air Canada Express regional feeder flights operated by Jazz.
Those who don’t want to partake can enjoy Heineken 0.0, a new addition to the drinks cart and the only non-alcoholic beer to be served by a North American airline.
Air Canada hopes its free beverage offer wins over U.S. passengers and convinces them to use it for flights to Europe and Asia, with stopovers in its northern neighbor.
“Our ability to offer a degree of differentiation that sets us apart from literally every other airline that we’re competing with on those routes was very important to us,” O’Leary said.
Those so-called “sixth freedom flights“ have become more important to Air Canada since travel demand between the U.S. and Canada slumped due to trade tensions.
With President Donald Trump threatening Canada with punitive tariffs and even annexation, Canadian travelers have sworn off U.S. vacations and sent flight bookings plunging by at least 70 percent in every month through September.
Airlines, including Air Canada, have responded by slashing capacity between the countries. Just last month, Air Canada axed five U.S. routes:
- Montreal (YUL) to Detroit (DTW)
- Montreal to Minneapolis-Saint Paul (MSP)
- Toronto (YYZ) to Indianapolis (IND)
- Vancouver (YVR) to Nashville (BNA)
- Vancouver to Tampa (TPA)
Airline was facing criticism over fees
Air Canada is also facing backlash over its use of ancillary fees. Since January 2025, customers traveling on entry-level Economy Basic fares have had to fork out $35 CAD ($25) to bring a carry-on bag onboard and an additional $50 CAD ($35) to bring a second.
While Air Canada said the baggage fees were “simply a competitive response to what is already the prevalent practice in the industry,” they drew sharp criticism from then Canadian Transport Minister Anita Anand.
“This is not acceptable at a time when Canadians’ pocketbooks are hurting and when they’ve been saving for their travels,” she said last year.
Air Canada is hoping that free beer and wine—a concession that’s more affordable than cutting baggage fees—will soothe customers’ hurt feelings.
Cutting baggage fees is “just not something that’s easily waived or given to everybody without having to have some impact on ticket price,” O’Leary said.
Canadian-made snacks debuting on flights
Air Canada has also introduced new Canadian-made snacks to its trolleys.
On flights before 10 a.m., passengers can now enjoy MadeGood Mornings Cinnamon Bun Soft Baked Oat Bars, reportedly “a favorite in homes across Canada,” alongside previous offerings of TWIGZ Craft Pretzels and Leclerc’s Celebration Cookies.
On flights from Billy Bishop Toronto City Airport (YTZ) departing after 10:30 a.m., passengers will be offered Ginger Defence Wellness Shots from the Toronto-based organic beverage company Greenhouse.
“As part of our commitment to elevating the onboard experience, we’re delighted to introduce even more exciting new options to our menus,” O’Leary said. “These upgrades offer something for everyone and proudly showcase Canadian brands so that our customers can sit back, relax, and kick-start their travels no matter where they’re going.”
Air Canada is also refreshing its Air Canada Bistro buy-on-board menu with new Canadian-made nibbles, including Summer Fresh Hummus & Crackers, Quaker Maple & Brown Sugar Oatmeal Cups, and TWIGZ Sour Cream & Onion Pretzels.
Travelers can also grab Smarties—but Americans shouldn’t expect the tangy discs of their trick-or-treat baskets. These are chocolatey, British-made Smarties, much more akin to M&Ms.