Air Canada restores annual adjusted EBITDA forecast as fuel-cost clarity improves; Q2 results beat

Air Canada

11/08/2026 23:07

Overview
Canada airline's Q2 revenue rose 11% yr/yr, beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company repurchased over six mln shares for C$125 mln in Q2

Outlook
Air Canada reinstates full-year 2026 adjusted EBITDA guidance of C$2.9 bln to C$3.2 bln, down from the C$3.35 bln-C$3.75 bln range suspended in April
Company expects 2026 ASM capacity to rise 2.25%-3.25% from 2025, below prior 3.5%-5.5% increase
Air Canada forecasts 2026 free cash flow of C$200 mln to C$500 mln, lowered from prior C$400 mln to C$800 mln

Result Drivers
STRONG DEMAND - Co said record Q2 revenue was driven by strong demand across its network, including premium and corporate travel and Sixth Freedom traffic
FUEL COSTS - Co said adjusted EBITDA reached top end of guidance despite a 49% yr/yr increase in fuel expense
WEATHER DISRUPTIONS - Co said capacity growth was limited by weather-related disruptions that negatively affected flight completion rates

Company press release: ID:nGNXc26989

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$6.30 bln
C$6.17 bln (13 Analysts)
Q2 Adjusted EPS
Beat
C$0.40
C$0.13 (13 Analysts)
Q2 Loss Per Share
 
C$0.63
 
Q2 Net Loss
 
C$178 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the airlines peer group is "buy"
Wall Street's median 12-month price target for Air Canada is C$28.00, about 2.7% above its August 11 closing price of C$27.27
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads
Aug 10 - Canada's Cargojet Q2 revenue beats estimates
Aug 11 - Canada's Exchange Income Q2 results beat estimates on aerospace growth, acquisitions

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)