Another type also in operation was the Lockheed L-1049 Super Constellation from 1954. Later mode modern turbo-props like the Vickers Viscount and Vickers Vanguard joined in 1955 and 1961 respectively to replace the older types such as the Dc-3. 

Trans-Canada Air Lines introduced the DC-8's on transcontinental routes on April 1, 1960 and overseas on June 1, 1960. The aircraft type was the first jet-engine powered plane to fly in Canada. It cut flying times by nearly 50%. The powerful jet was equipped with the latest navigational and radar technology allowing it to operate at altitudes of between 30,000 and 35,000 feet. The sleek jet was capable of carrying a load of 133 passengers (including crew) at speeds of more than 550 mph across Canada. TCA had grown to become Canada's national airline, in 1964, the name changed from Trans-Canada Airlines to Air Canada. Another jet aircraft to join the fleet was the DC9 used for short haul routes in 1966.  

During the 1970s government regulations ensured Air Canada's dominance over domestic regional carriers and rival CP Air. The carrier's fleet expansion saw the acquisition of Boeing 747-100 and DC10 in 1971 and Boeing 727, 737-200 and Lockheed Tristar jetliners in 1973. The new 747's were introduced across Canada to fly to points in Europe during the Spring of 1971. The new wide-body configuration was an instant hit with passengers and crew, providing a new feel of space and luxury ,previously unknown in commercial aircraft. 

In 1983 it purchased a new aircraft, the Boeing 767, twin aisle jet, which had a better fuel consumption than the older types it was replacing like the Tristar's or DC10. On 7 December 1987, Air Canada became the first airline in the world with a fleet-wide non-smoking policy. In 1988 Air Canada was privatised, and 43% of shares are sold on the public market. By this time, long-haul rival CP Air had become Canadian Airlines International following their acquisition by Pacific Western Airlines. The new revitalised private company was formed in 1989, revealing a new corporate livery on it's aircraft and tail logo.

In the early 1990s, Air Canada expanded it's European routes and increased capacity with the arrival of the Boeing 747-400 Jumbo's in 1990. However, it encountered financial difficulties as the airline industry slumped in the aftermath of the Persian Gulf War. By 1994, Air Canada returned to profitability. In 1995, taking advantage of a new U.S.-Canada open skies agreement, Air Canada added 30 new trans-border routes.

In May 1997, Air Canada became a founding member of the Star Alliance. In January 2001, Air Canada acquired Canada's second largest air carrier, Canadian Airlines, merging the latter's operations, becoming the world's twelfth-largest airline. On 31 October 2004, the last Air Canada Boeing 747 flight landed in Toronto from Frankfurt as AC873, ending 33 years of 747 service with the airline. The Boeing 747-400 fleet was replaced by the Airbus A330/A340 fleet. 

On 19 October 2005 Air Canada unveiled a new aircraft colour scheme and uniforms. A Boeing 767-300ER was painted in the new silver-blue colour, and the dark green/almost black tail was replaced with a new version of the maple leaf known as the 'Frosted Leaf'.

 On 9 November 2005, Air Canada agreed to renew its widebody fleet by purchasing 16 Boeing 777s (10 -300ERs, 6 -200LRs), and 14 Boeing 787-8s. It placed options on 18 Boeing 777s and 46 Boeing 787-8s and -9s. In the meantime the airline leased Airbus A340-500 until the new jets arrived.  

On 24 April 2007, Air Canada exercised half of their options for the Boeing 787 Dreamliner. Also Air Canada ordered and took delivery of the 18 Boeing 777s on order. Air Canada has also taken delivery of 15 Embraer 175s and 45 Embraer 190s.