Airline

Air Canada reports solid results, forecasts higher-than-expected 2026 earnings

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Air Canada reports solid results, forecasts higher-than-expected 2026 earnings

Air Canada has reported its full-year and fourth-quarter results for 2025.

For the quarter, operating revenues totalled C$5.8bn, while expenses were C$5.4bn ($4.23bn). As a result, operating income totalled C$324 million ($3.94bn). Net income was C$296 million ($216 million). 

Full-year revenue was C$22.4bn ($16.35bn) and expenses were C$21.5bn ($15.7bn), resulting in an operating income of C$918 million ($670 million) for the year. 

Net income for 2025 totalled C$644 million ($470 million). 

Air Canada guided a higher-than-expected adjusted EBITDA for 2026, expecting between C$3.35bn and C$3.75bn ($2.45bn—$2.74bn). Capacity for the year is expected to be up 3.5% to 5.5%. Free cash flow is expected to be between C$400 million and C$800 million ($292 million—$585 million). 

As of the end of the year, the company's long-term debt and lease liabilities were C$11.6bn ($8.47bn) and leverage ratio of 1.7x.