Air Canada does not plan to exercise options on Boeing 787s, CFO Michael Rousseau said at a recent industry event. He cited market conditions for the decision.

“We have [13] options for our 787s,” Rousseau said at the Bank of America Merrill Lynch Transportation Conference. “We don’t see exercising those options, given the current state of the world and the current forecast of GDP.”

Air Canada has firm orders for 37 787s, including eight -8s and 29 -9s. As of March 31, the airline operated 33 of them, and planned to take delivery of the last two by the end of 2019. It operates all the -8s it ordered and is taking the remainder of its -9s.

The carrier, amid a focused cost-reduction effort, recently announced it would spend $275 million to upgrade cabins on 12 Airbus A330-300s, including four it is adding to the fleet, so they match the 787s. The A330s will be based in Montreal and operate international flights. 

Air Canada executives, who said they are satisfied with the new Boeing twin, had considered exercising 787 options to meet long-haul demand, but opted for the less-costly moves of leasing four more A330s and upgrading the subfleet.

Rousseau’s comments indicate the decision to pass on 787 options goes beyond the A330 decision.

Sean Broderick,