Air Canada has officially confirmed a strategic shift for its leisure subsidiary, Air Canada Rouge, announcing that Boeing 737-8 (MAX 8) operations are slated to begin in late Q1 2026.

The move marks the beginning of an ambitious year-long transition that will see Rouge evolve into an all-Boeing 737 operator. At the same time, Air Canada's mainline streamlines its narrow-body fleet to an all-Airbus fleet. The transfer of approximately 45 Boeing 737-8 aircraft is expected to be completed by the end of 2026.

New Route Network & Crew Bases

To facilitate this massive influx of capacity, Air Canada is establishing a new Rouge crew base in Vancouver (YVR). This expansion signal's a significant pivot toward Western Canada, where the 737-8's range will be leveraged for mid-to-long-haul leisure flying.

Key routes of the new Rouge 737 fleet

Redesigned Cabin Configuration

In a departure from its original "low-cost" identity, Air Canada is repositioning Rouge as a hybrid leisure carrier. The incoming 737-8s will undergo a cabin densification and refresh, shifting from the current 169-seat mainline configuration to a 177 seat layout.

The New Rouge 737-8 Interior Specifications:

Analyst Note: The inclusion of Inflight Entertainment (IFE) is a major strategy shift. Historically, Rouge relied on a "Bring Your Own Device" streaming model. The upgrade to seat back screens and free Wi-Fi brings the subsidiary's hard product much closer to mainline standards.

The Strategic "Flip-Flop"

The transition is part of a broader "fleet cleanup." As the 737-8s move to Rouge, the subsidiary’s existing Airbus A320 and A321 aircraft will move to the mainline fleet. These Airbus frames will be retrofitted with Air Canada’s latest "distinctly Canadian" cabin interior, featuring larger overhead bins and a unified aesthetic.

By the end of 2026, the division of labor will be clear:

Mainline: Airbus A220, A320-family, and the upcoming A321XLR (arriving Q1 2026).

Rouge: Boeing 737-8.

This fleet commonality is expected to significantly lower Cost per Available Seat Mile (CASM) for Rouge, allowing it to compete more aggressively with Canadian Ultra Low-Cost Carriers (ULCCs) and WestJet’s leisure network.