Air Canada Reports Second Quarter 2026 Financial Results

Air Canada has reported its second quarter 2026 financial results and provided updated full-year 2026 financial guidance.

Michael Rousseau, President and Chief Executive Officer, said: “Air Canada delivered record second-quarter operating revenues, up 11 per cent year over year, supported by strong demand across our network, including continued strength in premium and corporate travel, as well as Sixth Freedom traffic. Capacity increased 0.3 per cent year over year, 0.2 percentage points below the lower end of our second quarter guidance mainly due to weather-related disruptions that negatively affected flight completion rates in the latter part of the quarter. Adjusted EBITDA reached $719 million, at the top end of our second quarter guidance range, despite a 49 per cent year-over-year increase in fuel expense. “

Rousseau noted that: “The performance in the quarter reflected the benefits of our diversified sources of revenue, the effectiveness of our pricing actions, and our continued focus on controllable cost execution. It especially underscores the dedication and professionalism of our employees, whom I thank for their unwavering commitment to serving our customers with excellence.”

Said Rousseau: “Cash generation and balance sheet strength remain key anchors of Air Canada’s financial foundation. In the quarter, we generated $651 million in net cash flows from operating activities and $174 million in free cash flow, fuelling our ability to invest in the business and return capital to shareholders. In the quarter, we deployed $125 million for share repurchases and maintained our leverage ratio at 1.7.”

He continued: “Looking ahead, we are reinstating and updating full-year 2026 guidance, supported by resilient demand for premium and corporate travel, our fare actions to mitigate fuel-price volatility and our disciplined cost management. Reflecting the progress we have made in strengthening our financial position, we believe an investment grade rating is achievable in the mid-term.”

And Rousseau added: “Beyond 2026, with Anko van der Werff announced as my successor, I am confident Air Canada has leadership continuity, a clear strategy and the financial strength to continue driving its long-term objectives and create significant sustainable value for all stakeholders.”

Highlights of Air Canada’s Q2 results include:

• Delivered record second-quarter operating revenues of $6.3 billion, driven by strong demand across the network
• Reported an adjusted EBITDA of $719 million, at the top end of the second-quarter guidance range, and an operating loss of $215 million, including $388 million of labour-related and other charges
• Generated $651 million in net cash flows from operating activities and $174 million in free cash flow*
• Deployed $125 million in the quarter to repurchase over six million shares
• Reinstated and updated full-year 2026 guidance, including adjusted EBITDA of $2.9 billion to $3.2 billion