Toronto-based company Porter Airlines has been flying the friendly skies since 2006, connecting Canadians with numerous domestic routes and offering a growing number of flights between Canada and the U.S., and beyond. Just last month, the brand launched daily nonstop service out of Los Angeles and San Francisco to Toronto. Flights in and out of Las Vegas are set to debut in March.
And the brand isn’t just growing — it’s aiming to disrupt how travelers think about economy air travel. We spoke with Kevin Jackson, executive vice president and chief commercial officer for Porter Airlines, to better understand that mission, and to hear more about what’s on the horizon for the brand.
What should advisors know about the history of Porter Airlines?
We are not a new airline — we started 17 years ago, and we were rooted in the belief that we could redefine what people expected from air travel. At the time, we did that within a regional context. Our base initially was Billy Bishop Toronto City Airport — which, if you’ve never been, is an incredible gem steps from downtown Toronto. We built our hub operations here, and over the years, we acquired 29 aircraft and expanded our network across 23 cities in Eastern Canada and the Northeastern U.S. (Newark, Boston, Dulles and Midway).
We recognize that there’s an opportunity for us to bring a highly competitive premium-economy product to the market.
Our transformation really began in the depths of COVID-19. We made the decision in March 2020 to cease operations; we saw a 90% collapse in demand in two weeks. We were on the ground for 18 months. Demand in Canada looked different than it did in the U.S., where there was a collapse, then an immediate start to a slow recovery. In Canada, we stayed at 90% collapse for most of a full year. We were very locked down.
We took advantage of that period to really reimagine things, and to reemerge with a substantial transformation of the business, including growing our network with up to 100 of the Embraer E195-E2 aircraft.
What other alterations added to Porter’s transformation?
We changed ourselves from a regional carrier with a homebase in downtown Toronto to a full national carrier in Canada with nationwide coverage, given that the Embraer E195-E2 could take us from Eastern Canada all the way down the West Coast of the U.S., into Central America, the northern parts of South America and to most of the Caribbean islands. So, that gives us full North American coverage with an aircraft that customers love. This allows us to differentiate ourselves in the market.
The 132-seat Embraer E195-E2 has no middle seats, which Porter leverages as part of its “premium economy” experience.
Credit: 2024 Porter AirlinesWhat makes this aircraft so special?
The E2 generation [of the Embraer E195] has a whole new set of technology, which gives the aircraft a substantially improved environmental impact and noise impact — it’s 75% quieter than other narrow-bodied aircraft, and has lower CO2 emissions per seat than any other narrow-bodied aircraft.
Additionally, it’s a two-by-two configuration. Imagine full transcontinental flying in that configuration — these are 132-seat aircraft with no middle seats. That shapes our go-to-market message: “Actually enjoy economy.” So, as a result of our historic brand position and this aircraft, we decided to focus on the economy segment of the market.
How does Porter hope to disrupt how travelers think of flying economy?
We look at the fact that we have been an economy carrier for 17 years, yet in the historic quarter, 50% of our travelers were business travelers. And we recognize that even within the economy segment there are different groups. Sure, there’s the basic economy customer, who has a certain need, but there are also the core economy travelers (about 90% of those who travel), and then you have premium-economy travel. These premium-economy travelers might fly economy and like an enhanced experience, or they’re flying business class on other carriers and paying a fortune.
We recognize that there’s an opportunity for us to bring a highly competitive premium-economy product to the market, positioned in the way only Porter can, with a really affordable fare. So, we’re attracting economy travelers who want to buy up, and business-class travelers who are looking for better value. We’re going to offer an elevated experience for every single passenger on the aircraft.
Wine and beer are served in glassware and included in economy fares.
Credit: 2024 Porter AirlinesWhat does a “premium-economy product” look like and include?
On the Embraer E195-E2, that starts with no middle seats. All passengers get free beer and wine, served in glassware. We have a nice selection of premium Canadian snacks, for free. And we offer premium, fast Wi-Fi for everyone on the aircraft — the quality is so good, you can stream your Netflix or AppleTV to your own device. I love to share that on most of our flights, we usually have more internet sessions than we do passengers, because passengers have multiple devices connected.
Finally, in addition to the free beer, wine and snacks, we offer a nice selection of premium fresh entrees that passengers can purchase if they have a Porter Classic airfare. That meal is included in the Porter Reserve product, which we position as “a-la-carte economy;” everything is included in this fare, from extra leg room and all meals and drinks to dedicated boarding, bags and flight changes.
How do you keep fares competitive?
Canadians travel heavily into the States, but most Americans aren’t traveling to Canada with high frequency. That excess capacity is supplemented by the fact that U.S. carriers are also on the routes Porter flies. So, there are lots of options, which often means low fares. In a marketplace like that, it’s about making it clear to consumers that, for the same price, you can get a heck of a lot more value and a better experience onboard with Porter.
A new Porter flight from San Francisco debuted last month, and we hear more are coming. What should advisors know or look out for in terms of Porter’s expanding presence stateside?
The Embraer E195-E2 launched its first U.S. flights last November, going to five cities in Florida: Tampa, Orlando, Miami, Fort Myers and Fort Lauderdale. We are serving all five of them from Toronto, and two from Ottawa.
L.A. and San Francisco launched in January as our first West Coast cities, with a single flight daily. And in March, we will launch Las Vegas. That rounds out the initial launch of the Embraer E195-E2 into the U.S., but there is a long road of opportunity for us to continue to expand across the United States, from Seattle and Charlotte, N.C., to Denver and Dallas. We will eventually go into the Caribbean and Mexico. This summer, we’ll announce more destinations.
Is there anything else advisors and their clients should know about Porter?
We have a new partnership with Alaska Airlines, out of L.A. and San Francisco. This will be the first opportunity for our customers to earn and redeem points on Alaska Airlines; they can leverage the Porter network and earn mileage plan credits going into Canada on Porter. We also have an interline relationship with JetBlue (and have for years). And you will see us announce more of these partnerships this year.
