Air Canada beats Q3 profit estimates but cuts forecast on rising fuel prices
Air Canada reported Q3 revenue of C$6.98 billion and adjusted EPS of C$0.75, beating analyst estimates of C$6.88 billion and C$0.53. It cut its 2026 adjusted EBITDA forecast to C$2.4 billion-C$2.7 billion and expects free cash flow to be break-even ± C$150 million.
1. Quarterly results
Air Canada’s Q3 revenue rose year over year to C$6.98 billion, and adjusted EPS was C$0.75. Both exceeded analyst estimates. Net income was C$139 million, and operating margin was 3.70%.
2. Forecast cut
The company lowered its 2026 adjusted EBITDA forecast to C$2.4 billion-C$2.7 billion from C$2.9 billion-C$3.2 billion. It now expects free cash flow to be break-even ± C$150 million, compared with its previous forecast of C$200 million-C$500 million. Air Canada said higher fuel prices are weighing on its outlook and are expected to affect results for the rest of the year.
3. Revenue and buyback
Air Canada said higher passenger load factor, increased yields and 33% growth in cargo revenue drove Q3 revenue growth. Pricing, capacity and cost measures helped offset higher fuel expenses. The company completed a C$800 million share buyback, reducing shares outstanding by about 10%.
