Air Canada

Latest Results (15.05.2026):

Air Canada’s fourth quarter of 2025 delivered record operating revenues of $5.8 billion and the company closed the full year 2025 with operating revenues of $22.372 billion. Management highlighted year‑over‑year earnings recovery, improved operations and customer sentiment, strong booking momentum, and returned capital to shareholders while providing 2026 guidance and reiterating longer‑term 2028 targets and 2030 aspirations.

Fourth quarter 2025 — key metrics

Operating revenues $5,770 million; operating income $324 million (5.6% margin); adjusted EBITDA $867 million (15.0% margin). Net income $296 million, diluted EPS $1.00; adjusted net income $191 million, adjusted diluted EPS $0.65. Adjusted CASM 15.34¢. Net cash from operating activities $423 million; free cash flow negative $478 million.

Full year 2025 — summary

Operating revenues $22,372 million; operating income $918 million (4.1% margin); adjusted EBITDA $3,124 million (14.0% margin). Net income $644 million, diluted EPS $1.86; adjusted net income $471 million, adjusted diluted EPS $1.47. Adjusted CASM 14.72¢. Net cash from operating activities $3,657 million; free cash flow $747 million. Long‑term debt and lease liabilities $11,576 million; net debt $5,411 million; leverage ratio 1.7x.

Cash, liquidity and capital allocation

Air Canada generated $3.657 billion in operating cash flow and $747 million in free cash flow for 2025, and deployed over $850 million in share buybacks. Total liquidity was $7.5 billion at year‑end. The company has non‑binding sale‑leaseback letters for up to $2 billion and assumes $1 billion will close in 2026 for guidance purposes.

2026 guidance

Full‑year 2026 guidance: adjusted EBITDA $3.35–$3.75 billion; ASM capacity up 3.5%–5.5% vs 2025; adjusted CASM 15.05¢–15.35¢; free cash flow $400–$800 million. Q1 2026 operated capacity planned to increase ~2.5% vs Q1 2025. Key assumptions include C$1.36/USD and jet fuel ~C$0.90/litre.

Operations, demand and recognition

Air Canada reported improved operational performance and customer sentiment scores year‑over‑year, strong momentum in bookings versus last year, and was named Best Airline in North America at the 2025 Skytrax World Airline Awards—despite having managed a summer labour disruption and significant winter weather events.

Long‑term targets and aspirations

The company reiterated its 2028 targets and 2030 aspirations announced earlier (examples: operating revenues ≈ $30 billion by 2028, adjusted EBITDA margin ≥17% by 2028 and 18–20% aspiration by 2030, free cash flow margin ~5%, and a ROIC aspiration ≥12% by 2030).