Air Canada’s revenues are rising, but it is revising its full-year targets.
According to its release, third-quarter operating revenue reached C$6.984 billion. This is a record for the period for the airline, up 21% year over year.
The load factor rose by 2.6 percentage points to 89%. The yield increased by 11%, and cargo revenues rose by 33%.
Fuel expense increased by C$906 million year over year. The price per litre exceeded the company’s forecast for the quarter by 10 cents. Adjusted EBITDA stood at C$936 million, compared with C$961 million a year earlier, for a margin of 13.4% (vs 16.6%). Operating income reached C$261 million, versus C$284 million.
According to its release, third-quarter operating revenue reached C$6.984 billion. This is a record for the period for the airline, up 21% year over year.
The load factor rose by 2.6 percentage points to 89%. The yield increased by 11%, and cargo revenues rose by 33%.
Fuel expense increased by C$906 million year over year. The price per litre exceeded the company’s forecast for the quarter by 10 cents. Adjusted EBITDA stood at C$936 million, compared with C$961 million a year earlier, for a margin of 13.4% (vs 16.6%). Operating income reached C$261 million, versus C$284 million.
Air Canada now expects adjusted EBITDA to be in the range of C$2.4–2.7 billion for 2026. On August 11, it had announced a range of C$2.9–3.2 billion.
Its free cash flow is expected to break even, at roughly C$150 million, versus previous guidance of C$200 million–$500 million.
The capacity in offered seat kilometers should rise by about 2.75%.
“If we foresee that the difficult environment will persist, our solid financial position gives us the flexibility we need to respond to near-term developments,” said John Di Bert, Senior Vice President and Chief Financial Officer, in the release.
Its free cash flow is expected to break even, at roughly C$150 million, versus previous guidance of C$200 million–$500 million.
The capacity in offered seat kilometers should rise by about 2.75%.
“If we foresee that the difficult environment will persist, our solid financial position gives us the flexibility we need to respond to near-term developments,” said John Di Bert, Senior Vice President and Chief Financial Officer, in the release.
