* Premium passengers want to avoid heat and crowds in Europe
and Japan, executive says
* Air Canada ( ACDVF ) adding flights to European destinations
expecting autumn and spring to be big contributors
* Trend began two or three years ago but has accelerated,
executive says
By Allison Lampert
MONTREAL, Aug 14 (Reuters) - Air Canada's ( ACDVF ) revenue
for September and October is likely to break records for the two
months as more premium travelers avoid the heat and summer
crowds in Europe and Japan, a senior executive said.
Large North American airlines have increasingly built their
business in recent years around premium travelers, corporate
accounts and loyalty program members, betting those customers
are slower to pull back when fares rise.
Increased demand for corporate flying in autumn combined
with shifting travel patterns among premium leisure passengers
are lifting executives' expectations for seasons once considered
slower than peak travel months like July and August.
"We anticipate that September and October will probably be
the strongest September and October from a revenue perspective
that the company's ever had," Air Canada ( ACDVF ) Chief Commercial
Officer Mark Galardo said in an interview on Thursday.
"We've seen tremendous growth in demand for people traveling
business class to go to Italy, Spain, France, the Mediterranean
in general, Japan," he added. "And typically, these customers
avoid the summer peak."
U.S. carriers like Delta Air Lines ( DAL ) and United
Airlines have also reported seeing shifting travel
patterns drive more demand in autumn, particularly for lucrative
European destinations.
Record heat, droughts and wildfires have affected large
parts of Europe this summer, and the lack of widespread
air-conditioning in some destinations has made them less
attractive for tourists. Japan has also had very hot days with
temperatures above 40 degrees Celsius (104 degrees Fahrenheit).
Galardo said the shift among premium travellers to flying
more in spring and autumn, which began two or three years ago,
had accelerated, and was even showing up a little in November.
PREMIUM STORY
Air Canada ( ACDVF ), however, has not seen a similar change in the
travel pattern of budget passengers.
"That shift to the fall season is really a story of
premium," Galardo said.
The change has already led Air Canada ( ACDVF ) to add flights to
European leisure destinations like Sicily and Mallorca and there
will be more to come as the carrier takes delivery of new
aircraft next year, Galardo said.
"We're expecting that the fall and spring seasons will be
significant contributors to these new routes," he said.
It has led Air Canada ( ACDVF ) to work on a maintenance strategy that
would allow the carrier to better balance the seasonality, such
as by bringing some planes in the shop in the summer to free
them up for September.