Air Canada reports record Q1 operating revenues, suspends full-year 2026 financial guidance citing jet fuel pricing volatility

Air Canada says that “given the volatility and uncertainty in relation to jet fuel prices for the second half of the year, Air Canada has suspended its full‑year 2026 financial guidance.”

The airline delivered that news as it reported its financial results for the first quarter of 2026 and provided financial guidance for the second quarter 2026.

Michael Rousseau, President and Chief Executive Officer, said: “In the first quarter, Air Canada built on the momentum of our best-ever fourth quarter to launch strongly into 2026. We reported record operating revenues of $5.8 billion, up more than 11 per cent from the same period in 2025.”

He continued: “Our operating income of $117 million was a positive $225 million swing from a year ago, and we generated record adjusted EBITDA of $623 million, up 61%. These results show the efficacy of our strategy and the dedication of our employees, whom I thank for their hard work.”

And Rousseau emphasized: “We are committed to maintaining a strong financial footing while delivering long-term shareholder value. During the quarter, we generated $1.8 billion in cash from operating activities, $1.6 billion in free cash flow and repurchased more than $140-million of our shares.”

He said that: “This performance reflects our prudent approach to capital allocation and balance sheet management, allowing us to invest in the business, manage debt and return capital to shareholders while preserving financial flexibility.”

Rousseau said that: “Supported by solid demand, our second quarter 2026 guidance reflects our expectation to offset between 50 per cent and 60 per cent of the estimated incremental fuel expense through various commercial and cost actions.”

He said that: “We continue to see strong demand across the network and throughout the booking window for the latter half of the year. I believe Air Canada is very well positioned from a financial, fleet and network perspective. As evidenced by two consecutive record quarters, the airline is performing well and the team is consistently executing on our long‑term strategy.”

Some highlights of Air Canada’s results include:

• Delivered record first quarter operating revenues of $5.8 billion driven by strong demand across the network
• Operating income of $117 million and record first quarter adjusted EBITDA* of $623 million
• Generated $1.8 billion in net cash flows from operating activities and $1.6 billion in free cash flow*
• Suspended full-year 2026 guidance and introduced second quarter 2026 financial guidance providing near-term visibility
• Demand remains solid and resilient amid elevated geopolitical instability

Go to www.aircanada.com for more.