Air Canada has reported improved financial reports for the first quarter of 2026, with higher revenue and a return to profitability. However, the airline decided to remove its full year forecast due to uncertainty linked to fuel prices and the growing conflict in the Middle East.
Revenue and operating performance
The report reveals record increases in operating revenues, which are up by 11% to $5.8 billion against the same period in 2025. Operating income also increased by $225 million since last year to $117 million profit and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) generated a record $623 million, up 61%.
Air Canada also reported 10.96 million revenue passengers, an increase of 5.6%.
President and Chief Executive Officer, Michael Rousseau, stated:
“These results show the efficacy of our strategy and the dedication of employees, whom I thank for their hard work.”
Second quarter forecast removed
Rousseau stated that the situation in the Middle East and the sharp increase in jet fuel prices has caused global disruption to energy markets. This would make the reliability of fuel forecasts for the second half of 2026 inaccurate.
Rousseau added:
“This is not unique to Air Canada, it is an industry wide challenge that affects how airlines think about capacity, pricing and risk,”
Instead of annual guidance, the airline issued an outlook for the second quarter, expecting an adjusted EBITDA between $575 million and $725 million, depending on demand and fuel price movements.
Recent fleet development
In fleet development, Air Canada received its first Airbus A321XLR on April 24, 2026, describing the delivery as the beginning of a “new era in customer comfort and network growth.” The integration of the aircraft is part of the airline’s broader strategy to grow its fleet and network capacity.
Air Canada’s first quarter results point to a recovery in earnings compared to previous years, supported by higher passenger demand and stronger revenue. While the company is operating in profit now, the outlook for the rest of 2026 remains uncertain.
Do you think Air Canada will remain in profit through the year? Let us know in the comments below.
