Air Canada Reports Third Quarter 2025 Financial Results

Executive Summary

• Air Canada reported Q3 2025 operating revenues of $5.774 billion (‑5% YoY) and net income of $264 million, with adjusted EBITDA of $961 million.
• The company updated its full‑year 2025 guidance, narrowing the adjusted EBITDA range to $2.95–$3.05 billion and confirming a modest free‑cash‑flow outlook ($0–$200 million).
• Air Canada announced a new Normal Course Issuer Bid (NCIB) authorizing the purchase and cancellation of up to 29.6 million shares (≈10% of public float) between 7 Nov 2025 and 6 Nov 2026.

Key Details

• Financial Highlights – Q3 2025
• Operating revenues: $5.774 billion (‑5% YoY)
• Operating income: $284 million (operating margin 4.9%)
• Adjusted EBITDA: $961 million (adjusted EBITDA margin 16.6%)
• Net income: $264 million, diluted EPS $0.88
• Adjusted net income: $223 million, adjusted EPS $0.75
• Net cash from operating activities: $813 million

• Free cash flow: $211 million

• Full‑Year 2025 Guidance (updated) | Metric | Updated Guidance | Prior Guidance | |--------|------------------|----------------| | Adjusted EBITDA | $2.95 bn – $3.05 bn | $2.90 bn – $3.10 bn | | ASM capacity growth | ≈0.75% vs 2024 | 0.5%–1.5% vs 2024 | | Adjusted CASM | 14.60¢ – 14.70¢ | 14.60¢ – 14.70¢ | | Free cash flow | $0 – $200 million | –$50 million – $150 million |

• Assumptions Updated

• CAD 1.40 per USD (previously 1.39)

• Jet‑fuel price C$0.91/L (previously C$0.92/L)

• Normal Course Issuer Bid (NCIB)

• Authorization to purchase/cancel up to 29,557,428 Class A & B shares (~10% of public float).
• Purchase window: 7 Nov 2025 – 6 Nov 2026.
• Daily limit: up to 776,096 shares (25% of average daily volume).

• Prior NCIB (Nov 2024‑Nov 2025) fully exercised at weighted‑average price $22.34 per share.

• Operational Metrics – Q3 2025

• Revenue passenger miles: 24,459 million (‑2.6% YoY)
• Available seat miles: 28,282 million (‑2.1% YoY)
• Passenger load factor: 86.5% (‑0.4 pp YoY)
• Yield: 21.4 cents/RPM (‑3.9 cents YoY)

• Fleet size at period end: 366 aircraft (↑ 3.7% vs 2024)

• Liquidity & Debt

• Total liquidity: $8,296 million (down from $10,261 million)
• Net debt: $4,830 million (up $1,404 million YoY)

• Leverage ratio (net debt/adjusted EBITDA‑12M): 1.6×

• Management Commentary

• CEO Michael Rousseau highlighted “solid third‑quarter performance” after adjusting for a labour disruption and emphasized continued booking momentum into Q4 2025 and early 2026.

• Outlook focuses on fleet renewal, cost‑discipline, and the renewed share‑buyback program.

• Conference Call

• Date: 5 Nov 2025, 8:00 a.m. ET
• Participants: Michael Rousseau (CEO), John Di Bert (CFO), Mark Galardo (CCO & President, Cargo).

Notable Quotes

“We delivered a solid third quarter financial and operating performance… Our focus over the next twelve months is on preparing the airline to grow and expand margins as we transform our fleet with best‑in‑class aircraft.” – Michael Rousseau, President & CEO.