1:22 PM PT -- Air Canada released a statement on this incident, acknowledging they did have an engine issue on this plane -- while noting the engine itself wasn't on fire, despite how it looked.

They write, "Our pilots are highly skilled professionals well trained to safely manage such incidents and in this case the situation was quickly stabilized as per our standard procedures and the aircraft landed normally." They say the passengers were able to deplane safely.

A Boeing jet nearly caught fire in mid-air ... with new footage showing the massive craft shooting flames from its wing in the middle of takeoff.

Air Canada Flight AC872 took off from Toronto Wednesday night but had to abruptly turn around for an emergency landing when several huge fireballs exploded from the plane, not long after lifting off the tarmac.

Check out the clip ... the plane's just starting its ascent when fire blasts from the right wing of the plane -- and, one of the guys on the ground yells out that they've got an engine fire. Unclear if that's actually what occurred, but it certainly looks like it from the vid.

Air Canada made a statement to a local Toronto outlet, confirming the incident and saying the plane immediately landed, was checked out by airport response vehicles, and headed back to the gate. The passengers were switched to a different craft.

Nearly 400 passengers were on the flight ... as far as we know, no injuries have been reported.

Obviously, Boeing's used to dealing with problems like this at this point ... a Boeing plane caught on fire in Senegal after a failed takeoff attempt last month -- burning on the runway. People ran from their lives then, but no evidence of that here.

Boeing planes have lost wheels, performed dangerous landings after landing gear failure, and panels even flew off one plane ... and severe turbulence on a Singapore Airlines flight left one dead and more than 30 injured.

We've reached out to Air Canada and Boeing ... so far, no word back.