Air Canada has taken delivery of its first Airbus A321XLR, becoming the first Canadian airline to operate the long-range narrowbody and the first in Canada to offer flat-bed seats in business class on a single-aisle aircraft. The aircraft, leased from SMBC Aviation Capital, is the first of 30 A321XLRs that Air Canada has on order—15 leased and 15 purchased directly from Airbus. The A321XLR is configured with 14 Signature Class suites in a 1-1 layout, all convertible to fully flat beds with direct aisle access, and 168 economy seats in a 3-3 arrangement, for a total of 182 seats. This marks the first time a Canadian carrier offers lie-flat seats on a narrowbody, a product designed to compete with widebody business class on flights exceeding eight hours. The cabin features Airbus' Airspace interior, advanced mood lighting to reduce jet lag, XL overhead bins with 60% more capacity, and next-generation seatback screens with Bluetooth audio and full connectivity. With a range of up to 4,700 nautical miles and 30% lower fuel consumption per seat compared to previous-generation narrowbodies, the A321XLR enables Air Canada to open new transatlantic routes that were previously too thin for widebodies. The airline plans to deploy the aircraft from Montreal and Toronto to European secondary cities such as Toulouse, Edinburgh, Dublin, and Palma de Mallorca. The aircraft will also strengthen Air Canada's position on transcontinental North American routes, where its flat-bed business class offers a competitive edge against US majors. Powered by Pratt & Whitney GTF engines, the A321XLR delivers a 30% reduction in fuel burn and lower NOx and noise emissions. For Airbus, this delivery adds to a global order book of over 500 A321XLRs as of March 2026, confirming the model's commercial success. Air Canada already operates 136 Airbus aircraft and has 61 more on order, including A350s, solidifying the European manufacturer's central role in the Canadian flag carrier's fleet.