Air Canada

AC

Equity

ISIN null / Valor 25946351

Toronto Stock Exchange (2026-05-01)

CAD 18.26-2.09%

Air Canada
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About company

Air Canada, the largest airline and flag carrier of Canada, operates an extensive international network that spans six continents as a founding member of the Star Alliance. With major hubs in Toronto, Montreal, and Vancouver, the airline offers a range of passenger and cargo services across a diverse fleet. Renowned for its service quality, Air Canada is the only international network carrier in North America to achieve a Four-Star rating from Skytrax. The company plays a critical role in connecting Canada to global markets, facilitating both leisure and business travel, and maintaining a significant presence in the competitive aviation industry.

Summarized from source with an LLMView SourceSector: Industrials

Revenue and Profitability

Q3 operating revenues: $5.774B (vs $6.106B in Q3 2024). GAAP operating income: $284M (4.9% margin). Adjusted EBITDA: $961M (16.6% margin). Adjusted pre‑tax income: $329M. Adjusted net income: $223M (adjusted diluted EPS $0.75).

One-time Labor/Pension Charge

Q3 included a one-time pension past‑service and other labour‑related charge of $173M, which Air Canada excluded from adjusted measures when reporting adjusted EBITDA, adjusted CASM and adjusted net income.

Cash Flow and Capital

Net cash from operations was $813M in Q3 and free cash flow was $211M. Additions to property, equipment and intangibles were $602M in the quarter. Total liquidity was $8.296B as of Sept. 30, 2025.

Balance Sheet and Leverage

Net debt at quarter‑end: $4.830B. Trailing 12‑month adjusted EBITDA: $2.953B, giving a net‑debt-to‑adjusted‑EBITDA ratio of ~1.6x.

Updated 2025 Guidance

Full‑year 2025 guidance updated: adjusted EBITDA $2.95B–$3.05B (prior $2.9B–$3.1B); ASM capacity ~+0.75% vs 2024; adjusted CASM guidance unchanged (14.60¢–14.70¢); free cash flow now guided to $0–$200M (previously ‑$50M–$150M). Currency assumption C$1.40/USD and jet fuel ~C$0.91/litre for 2025.

Share Buyback (NCIB)

Air Canada announced a new Normal Course Issuer Bid to repurchase up to 29,557,428 shares (~10% of public float) from Nov 7, 2025 to Nov 6, 2026 and will use an automatic purchase plan with its broker; prior NCIB (ended Nov 4, 2025) purchased ~35.8M shares at a weighted average $22.34.

Operating Metrics

ASMs (capacity) were 28,282 million (‑2.1% YoY). Passenger load factor was 86.5% (‑0.4 pp). PRASM/TRASM and yield declined (PRASM 18.5¢ vs 19.4¢ in Q3 2024; yield 21.4¢ vs 22.3¢). Fuel cost per litre improved to 88.3¢ (vs 98.2¢).

Outlook and Management Commentary

Management said results “after adjusting for the strike impact” met expectations, cited strong Atlantic and premium demand, positive booking momentum into Q4 and early Q1 2026 indicators, and reiterated focus on fleet modernization, cost discipline, margin expansion and returning value to shareholders.

Summarized from source with an LLMView Source

Key figures

29.4%1Y

-4.85%3Y

-26.3%5Y

Performance

35.8%1Y

33.3%3Y

35.4%5Y

Volatility