Air Canada released its financial results for the 2025 second quarter. The airline’s operating revenues reached Canadian dollar $5.632 billion (£3.1billion), which increased by 2% compared to the previous year.
Highlights of the quarterly financial report
Air Canada has recently released its quarterly financial report for the second quarter of 2025.
The operating revenues of the quarter reached CA$5.632 billion, while the operating expenses reached CA$5.214 billion.
Its operating income reached CA$418 million with an operating margin of 7.4%. The adjusted pre-tax income reached CA$300 million, while the net income reached $186 million. The diluted earnings per share were CA$0.51.
Premium revenues increased by 5% compared to the same period of 2024.
The cash flow from operating activities reached CA$895 million, with $183 million in free cash flow.
Notably, the airline completed a CA$500 million substantial issuer bid with about CA$296 million total issued and outstanding shares as of June 30 2025.
The leverage ratio was 1.4.
For the upcoming quarter of 2025, the airline is expected to increase its Available Seat Miles (ASM) between 3.25% and 3.75% from the same period in 2024. Serving 11.6 million passengers, its ASM was up 2.5% year-over-year.
Updates on the full-year expectation from the airline for 2025
For the full year of 2025, Air Canada reiterated the guidance it provided previously in May after reviewing and updating several major assumptions, including the expected GDP growth in Canada, the currency rate between the Canadian dollar and the U.S. dollar, and the expected jet fuel price.
In the 2025 Guidance, the adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) is expected to range from CA$3.2 billion to CA$3.6 billion.
The ASM capacity changed from 1% to 3% increase compared to 2024.
The free cash flow is expected to be approximately break-even within a range of plus or minus CA$200 million.
Air Canada President and Chief Executive Officer Michael Rousseau said:
“Air Canada’s second quarter 2025 results showcase the airline’s many strengths in the face of a challenging environment. We have strategically redirected capacity to high-demand markets and captured demand for premium services, leveraging the breadth and strength of our global network. Our results were further lifted by strong performances by Air Canada Cargo, Air Canada Vacations, and Aeroplan—each a key pillar of our diversified business.”
What’s your take on Air Canada’s performance this quarter? Share your thoughts in the comments below.
