Air Canada reports revenue growth

Air Canada reported a 21 percent increase in operating revenue for the third quarter, reaching 6,984 million Canadian dollars. This marks a record for the period and reflects strong performance in several areas, including passenger and cargo revenue.

Load factor and yield improvements

The company’s load factor, which measures how full its planes are, rose by 2.6 points to 89 percent. Additionally, the yield, or the revenue per seat mile, increased by 11 percent, showing improved pricing power and demand for flights.

Rising fuel costs impact profits

Fuel expenses increased by 906 million Canadian dollars compared to the same period last year. This rise in costs contributed to a decline in adjusted EBITDA, which fell to 936 million Canadian dollars from 961 million Canadian dollars a year earlier, with a margin of 13.4 percent.

Revised financial targets for 2026

Air Canada has revised its 2026 financial targets, now forecasting an adjusted EBITDA of between 2.4 and 2.7 billion Canadian dollars. This is a significant downward revision from its earlier estimate of 2.9 to 3.2 billion Canadian dollars announced in August.

Cash flow and capacity adjustments

The company expects its available cash flow for 2026 to be balanced, within a range of plus or minus 150 million Canadian dollars. This is a narrower range than previously projected, which was between 200 to 500 million Canadian dollars. Additionally, the seat-kilometers offered capacity is expected to grow by about 2.75 percent.

Company emphasizes financial flexibility

In a statement, John Di Bert, general vice president and chief financial officer, noted that Air Canada’s strong financial position provides flexibility to manage challenges in the current environment. He emphasized the company’s ability to adapt to short-term changes despite ongoing difficulties.