Air Canada Reports Third Quarter 2026 Financial Results
Key Highlights
- ➤Q3 operating revenue reached a record $6.984 billion
- ➤Q3 adjusted EBITDA was $936 million, with 13.4% margin
- ➤2026 adjusted EBITDA guidance cut to $2.4 billion-$2.7 billion
- ➤2026 free cash flow guidance reduced to break-even ± $150 million
- ➤Air Canada launched a share buyback targeting 25,197,886 shares
Expert Statements
John Di Bert, Executive Vice President and Chief Financial Officer of Air Canada
“Air Canada delivered record third-quarter operating revenues of $7 billion, reflecting broad-based strength across our network and revenue streams. Strong demand supported a 2.6-percentage-point year-over-year gain in passenger load factor to 89% and an 11% increase in yield. Combined with 33% growth in cargo revenues, this solid performance contributed to a 21% year-over-year increase in total revenues. Decisive pricing, capacity and cost actions helped mitigate the impact of a $906 million year-over-year increase in fuel expense, with fuel prices 10 cents per litre above our third-quarter expectations. We delivered adjusted EBITDA* of $936 million and operating income of $261 million,”
John Di Bert, Executive Vice President and Chief Financial Officer of Air Canada
“While we expect the challenging environment to persist, our strong financial position provides us with the flexibility to respond to near-term developments. We remain focused on executing on what we can control. Our diversified business model, broad global network and leading premium offering provide a solid foundation for navigating this environment and advancing our New Frontiers strategy. Air Canada’s recent recognition as Best Airline in North America at the 2026 Skytrax World Airline Awards — the 10(th) time since 2010 — reinforces the strength of our offering and our commitment to customers,”
* Delivered record third-quarter operating revenues of $6.984 billion * Achieved 14% year-over-year growth in total unit revenues in the third quarter of 2026 * Reported adjusted EBITDA of $936 million and operating income of $261 million * Allocated Aeroplan transaction proceeds to repay $1.7 billion of debt and complete an $800 million substantial issuer bid * Reduced shares outstanding by approximately 10% with the completion of the substantial issuer bid, ending the third quarter with 252.7 million shares outstanding * Ended the third quarter with long-term debt and lease liabilities of $10.853 billion, net debt(*) of $4.219 billion and total liquidity of $8.018 billion MONTRÉAL, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Air Canada today reported its third quarter 2026 financial results and provided updated full-year 2026 financial guidance.
“Air Canada delivered record third-quarter operating revenues of $7 billion, reflecting broad-based strength across our network and revenue streams. Strong demand supported a 2.6-percentage-point year-over-year gain in passenger load factor to 89% and an 11% increase in yield. Combined with 33% growth in cargo revenues, this solid performance contributed to a 21% year-over-year increase in total revenues. Decisive pricing, capacity and cost actions helped mitigate the impact of a $906 million year-over-year increase in fuel expense, with fuel prices 10 cents per litre above our third-quarter expectations. We delivered adjusted EBITDA* of $936 million and operating income of $261 million,” said John Di Bert, Executive Vice President and Chief Financial Officer.
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