Air Canada reports 2025 third quarter results

Air Canada has reported its third quarter 2025 financial results, with highlights including:

• Operating revenues of $5.774 billion, a decline of 5% versus last year
• Operating income of $284 million with operating margin of 4.9% and adjusted EBITDA* of $961 million with adjusted EBITDA margin* of 16.6%
• Net cash flows from operating activities of $813 million and free cash flow* of $211 million
• Robust momentum in bookings, positioning Air Canada to deliver solid results in the fourth quarter of 2025

Michael Rousseau, President and Chief Executive Officer of Air Canada, said: “We delivered a solid third quarter financial and operating performance, after adjusting for the labour disruption, which occurred at the peak of the summer season. We deeply regret that the disruption significantly affected our customers.”

Rousseau continued: “The entire company worked extremely hard to assist those whose travel was disrupted and to quickly return our operations to normal, and we were also flexible with customer goodwill policies. I thank all employees for their commitment to customer service and operational excellence.”

He noted that: “Our financial results, after adjusting for the strike impact, met our expectations, with strength in the Atlantic market and in our premium cabins. Operational metrics, such as on-time performance and net promoter score, exceeded both internal targets and last year’s levels for the quarter and year-to-date.”

And Rousseau added: “Our underlying business fundamentals are very strong. There is good booking momentum in the fourth quarter and early positive indicators into the first quarter of 2026. Our trans-border business trends are largely stable and on par with the first half of 2025.”

Air Canada’s President and Chief Executive Officer observed: “We have exciting times ahead of us with growth plans fuelled by key strategic initiatives and new state-of-the-art efficient aircraft.”

And he said that: “Our focus over the next twelve months is on preparing the airline to grow and expand margins as we transform our fleet with the arrival of best-in-class aircraft across the portfolio and a revitalized Rouge offering. We will also continue to improve our cost structure through productivity gains, operational efficiencies and constant cost discipline to mitigate near term pressures. We continue to focus on free cash flow generation in order to return value to shareholders, including through the renewal of our share buyback program announced today.”

Said Rousseau: “The hard work ahead in 2026 will position us very well for the second half of our strategic plan and to deliver significant long-term value to all stakeholders.”