The two airlines already have interline agreements in place for passenger and cargo services and hope to introduce codeshare services, which integrate their bookings more closely, in the third quarter.
The agreement will allow Etihad Guest and Aeroplan travellers to earn frequent flyer miles on codeshare flights and reciprocal premium lounge access in Toronto and Abu Dhabi for eligible passengers.
Subject to regulatory approval, Etihad Airways will put its EY code on Air Canada flights between Toronto and select North American destinations.
Air Canada will place its AC code on Etihad Airways' flights between Toronto and Abu Dhabi, as well as Etihad Airways' flights between London and Abu Dhabi.
The airlines will also work together to improve cargo services.
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