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Air Canada cuts travel agent commissions in bid to lower costs, industry group says

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Air Canada says fuel shortages are not affecting their operations, saying there will be ‘no significant impact’ through this summer. Kamil Karamali explains.

MONTREAL — Travel agents say Air Canada is cutting their commissions in a move that threatens to put some out of business.

Suzanne Acton-Gervais, president of the Association of Canadian Travel Agencies and Travel Advisors, says the country’s biggest carrier told the industry group the lower rates will take effect July 1.

She says the organization’s 21,000 members could see a loss of about a quarter of Air Canada-related revenue as a result.

Compensation arrangements for bookings vary by agency, but they often hover between eight and 10 per cent of the base cost of a booking.

Travel adviser Brenda Slater says many of her counterparts have seen Air Canada commissions cut in half to about four or five per cent.

The airline’s move comes after it trimmed its flight schedule and suspended its financial forecast for the year amid a prolonged spike in jet fuel prices caused by the closure of the Strait of Hormuz.

Air Canada did not respond immediately to questions on the commission cuts.

This report by The Canadian Press was first published June 23, 2026.

Christopher Reynolds, The Canadian Press