MONTREAL, Feb 14 (Reuters) - Air Canada ( ACDVF ) sees

encouraging booking trends and yield signals for the second and

third quarters of 2025, but plans to shift some capacity in case

of a possible near-term slowdown in bookings to the United

States, an executive said on Friday.

Airlines with international routes are capitalizing on

growing demand for global travel, as consumers place greater

emphasis on experiences rather than material goods.

However, costly labour agreements and rising aircraft

maintenance expenses are squeezing carriers' profit margins.

Montreal-based Air Canada ( ACDVF ) is looking at redeploying some

capacity in anticipation of a possible slowdown in near-term

bookings to the United States, although the carrier hasn't

immediately seen evidence of it.

"We don't see any major slowdown or anything substantial

that would change our view of the market," Mark Galardo,

executive vice president, revenue & network planning, told

analysts.

"That being said, you know, if we can derisk this a

little bit and be a bit proactive and move capacity to other

sectors we see strength in, that's the right move right now."

Some

Canadians have canceled trips

south of the border, among other measures in reaction to

U.S. President Donald Trump threatening tariffs on imports from

Canada.

Galardo said it was too early to discuss the impact of

possible U.S. tariffs on imports and the prospect of retaliatory

duties.

On Thursday night, Canada's largest carrier forecast record

2024 operating revenue and 2025 core profit above analysts'

estimates, helped by a rebound in business bookings and strong

passenger demand for international travel.

Montreal-based Air Canada ( ACDVF ) said it expects its 2025

adjusted earnings before interest, taxes, depreciation and

amortization in the range of C$3.4 billion ($2.39 billion) to

C$3.8 billion, compared with analysts' average estimates of

C$3.5 billion.

Last year, the Canadian flag carrier signed a new labor deal

with its pilots that would give the aviators a general four-year

cumulative pay hike of about 42%.