Air Canada
TSX:AC

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Air Canada
TSX:AC
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Price: 18.33 CAD -0.87%
Market Cap: 5.4B CAD

Air Canada
Investor Relations

In the skies above the expansive Canadian landscape, Air Canada has carved a path as the nation's flag carrier, weaving its services across continents. Originating in 1937 as Trans-Canada Air Lines, the company soared through decades of aviation evolution, rebranding itself as Air Canada in 1965. Today, it stands as a robust player in the airline industry, providing passenger and cargo transport services. Anchored in Montreal, Quebec, Air Canada operates a vast network that spans over 200 destinations worldwide, making it a vital conduit for both international and domestic travel. It boasts a fleet of diverse aircraft, including Boeing, Airbus, and Embraer, allowing it to cater to varying demands from short hauls to long intercontinental routes.

Air Canada's business model hinges on generating revenue from multiple streams. The passenger segment remains the core of its operations, offering tiers of service from economy to premium. This is supplemented by ancillary services such as seat selection, baggage fees, and in-flight purchases. Furthermore, the airline capitalizes on its Aeroplan loyalty program, fostering customer retention and engagement. Cargo transport plays a complementary role in its revenue structure, with increased focus on e-commerce shipments and vital freight services. Additionally, the airline benefits from cross-country partnerships and alliances, notably as a founding member of the Star Alliance, which enhances global connectivity and network reach. Through these endeavors, Air Canada seeks to pilot above turbulence and navigate towards financial sustainability.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Nov 5, 2025
AI Summary
Q3 2025

Q3 Impacted by Strike: Air Canada's Q3 results were significantly affected by a labor disruption, with operating revenue down 5% and adjusted EBITDA down $562 million from last year due to strike-related flight cancellations.

Strong Recovery and Bookings: Booking trends rebounded quickly after the disruption, and fourth quarter bookings are described as very strong, with expectations for year-over-year adjusted EBITDA growth in Q4.

Updated 2025 Guidance: Full-year guidance was updated: capacity to increase 0.75% over 2024, adjusted EBITDA expected between $2.95–$3.05 billion, adjusted CASM projected at $0.146–$0.147, and free cash flow between breakeven and $200 million.

Cost Control Measures: Cost reduction initiatives are on track, including a $150 million program and management headcount reductions; ongoing cost discipline and productivity gains will help offset labor and airport fee pressures.

Fleet Transition and Delays: Fleet expansion continues, but delivery delays will slow capacity growth in 2026; transition of all 737 MAX aircraft to Rouge is underway, and widebody deliveries have been deferred.

NCIB and Capital Allocation: Air Canada renewed its share buyback program (NCIB), with $1.3 billion already deployed; capital allocation remains focused on growth, balance sheet strength, and shareholder returns.

Premium and Corporate Strength: Premium and corporate segments are outperforming, with front-cabin revenues up and corporate revenues growing double digits, especially across the transatlantic.

Key Financials
Operating Revenue
$5.8 billion
Adjusted EBITDA
$961 million
Operating Income
$284 million
Adjusted EBITDA Margin
16.6%
Passenger Revenue
$5.2 billion
Adjusted CASM
$0.1399
Free Cash Flow
$211 million (Q3), $1.2 billion year-to-date
Cash from Operations
$813 million
Total Liquidity
$8.3 billion
Leverage Ratio
1.6 turns
CapEx
$900 million (Q4 expected), just under $3 billion for full year 2025
Sixth Freedom Revenues
up 9% year-to-date at end of Q3 2025
Premium Cabin Revenue Outperformance
6 percentage points higher than economy cabin
Corporate Revenue Growth
up roughly 11% year-over-year in September
Aeroplan Membership
over 10 million members
Net Promoter Score
rose by 10 points in the quarter
Earnings Call Recording
Other Earnings Calls

Management

Mr. Michael Stewart Rousseau CPA
CEO, President & Director
No Bio Available
Mr. John Di Bert C.A., CPA
Executive VP & CFO
No Bio Available
Mr. Craig Landry
Executive VP & Chief Operations Officer
No Bio Available
Mr. Marc B. Barbeau
Executive VP, Chief Legal Officer & Corporate Secretary
No Bio Available
Ms. Arielle Meloul-Wechsler
Executive VP and Chief Human Resources & Public Affairs
No Bio Available
Mr. Melvin Crocker
Chief Information Officer
No Bio Available
Ms. Valerie Durand
Head of Investor Relations & Corporate Sustainability
No Bio Available
Mr. Mark Youssef Nasr
Executive Vice President Marketing & Digital and President of Aeroplan
No Bio Available
Mr. Richard Steer
Senior Vice President of Operations & Express Carriers
No Bio Available
Mr. Mark Galardo
Executive VP of Revenue & Network Planning and President of Cargo
No Bio Available

Contacts

Address
QUEBEC
Saint-Laurent
Air Canada Centre,ZIP YUL 1276, 7373 Cote-Vertu West
Contacts
+15144226020.0
www.aircanada.com