The Canadian aerospace sector is witnessing a remarkable resurgence, highlighted by Airbus SE’s monumental order for 150 A220 jets from low-cost carrier AirAsia, valued at US$19 billion. This agreement, celebrated in May during a lively event in Mirabel, Quebec, marks the largest order ever for a Canadian-made commercial aircraft and signals a vibrant future for the industry, which is rebounding after the setbacks of the COVID-19 pandemic.
A Landmark Order
At a press conference attended by Prime Minister Mark Carney and jubilant Airbus employees, the significance of the A220 order was clear. It not only overshadows Bombardier Inc.’s previous sales records but has also been viewed as a testament to the enduring global demand for Canadian-manufactured goods amidst ongoing international trade challenges. Carney’s direct involvement in the negotiations with AirAsia CEO Tony Fernandes underscores a shift in how Canadian leaders approach the promotion of domestic aerospace capabilities, a strategy more commonly seen in the U.S. and France.
Airbus executives hailed the deal as a pivotal advantage, predicting it would secure thousands of high-skilled jobs in Quebec and beyond, thereby cementing Canada’s stature in the global aerospace market.
Rebounding from Adversity
The pandemic-induced downturn in air travel had previously grounded many aircraft and stunted production lines across the industry. However, as travel restrictions ease, demand is surging, leading to record backlogs for many manufacturers. Bombardier’s CEO, Éric Martel, described this period as a “golden moment” for aviation in Canada, noting an unbroken trend of orders despite geopolitical tensions.
Airbus has doubled its workforce in Canada over the past seven years, now employing over 5,300 individuals, which is indicative of the industry’s robust recovery trajectory. Moreover, Bombardier and de Havilland Inc. are expanding their manufacturing facilities to meet the increasing demand, highlighting a renewed commitment to production and innovation.
Growth and Challenges Ahead
Recent reports indicate a staggering 76% increase in revenue for Canada’s aerospace manufacturers over the past five years, reaching approximately $45.7 billion. Exports of aerospace equipment surged to $28.2 billion in 2025, reflecting a significant recovery driven by enhanced demand from European and Asian markets.
Yet, this growth is not without its hurdles. The looming threat of a trade war, particularly concerning U.S. tariffs on aerospace imports, poses a potential risk to the industry’s momentum. The U.S. Department of Commerce has recently conducted investigations that could alter the long-standing tariff-free framework under which the aerospace sector has thrived. Industry leaders remain cautiously optimistic, believing that the integrated nature of the aerospace supply chain may protect against drastic changes.
The Need for Skilled Labour
As the industry gears up for expansion, securing a skilled workforce remains a top priority. Current estimates suggest that Quebec alone will need an additional 65,000 aerospace workers over the next decade. In response, the Quebec government has announced initiatives to enhance training programmes, aiming to bridge the gap between supply and demand for skilled labour in the sector.
Companies like KF Aerospace are also proactively addressing the labour shortage by partnering with educational institutions to foster a new generation of technicians. Despite these efforts, concerns about potential retirements of experienced workers persist, threatening to impede growth if not adequately managed.
Why it Matters
The renewed vigour of Canada’s aerospace industry signifies not only economic recovery but also a broader commitment to innovation and competitiveness on the global stage. With strategic investments and a focus on developing a skilled workforce, Canada stands poised to reclaim its position as a leader in aerospace manufacturing. However, to maintain this trajectory, policymakers must prioritise a cohesive national aerospace strategy to support continued growth and ensure the industry is equipped to meet evolving global demands. As the sector navigates challenges, its ability to adapt and invest in future technologies will be crucial for sustaining its resurgence and capitalising on the growing market opportunities.