Canada’s Aerospace Industry Soars Despite Economic Headwinds

Airbus recently secured a US$19-billion order for 150 A220 jets built in Canada, marking the largest commercial airplane order in Canadian history. The deal, finalized with AirAsia and supported by Prime Minister Mark Carney, symbolizes a resurgence in Canada’s aerospace manufacturing and maintenance sectors following the COVID-19 pandemic.

Executives at Airbus, Bombardier, and de Havilland are experiencing record backlogs and preparing for increased defence spending. Canada’s aerospace revenue increased 76 percent over the last five years, reaching $45.7-billion by the end of 2025, with exports totaling $28.2-billion in the same period. However, industry leaders caution that continued success hinges on maintaining tariff-free trade, resolving supply chain issues, addressing a looming labour shortage, with an anticipated need for 65,000 more workers in Quebec alone within the next decade, and securing a more comprehensive long-term strategy from the Canadian government.