Air Canada is suspending its full-year guidance for 2026, citing “volatility and uncertainty in relation to jet fuel prices for the second half of the year.”
The airline made the announcement in its first-quarter earnings results on Thursday afternoon.
“Q1 brought several challenges: unusually cold winter, various ice storms, disruption with certain sun destinations, the evolving conditions in the Middle East,” chief executive Michael Rousseau told analysts during the earnings call.
Rousseau also stated that the ongoing war in the Middle East, which has resulted in a stark increase in global jet fuel prices, has “created a significant external shock for our industry.”
“This is not unique to Air Canada — it is an industry-wide challenge that affects how airlines think about capacity, pricing and risk,” he said.
Executive vice-president and chief commercial officer Mark Galardo also said the airline is “diligently managing an evolving geopolitical and macroeconomic landscape,” including being one of the first airlines to implement fare increases as the crisis in the Middle East unfolded.
“We are seeing resilient demand across most geographies and customer types,” Galardo said. “Our commercial model allows us to be competitive and attract different customer types, enabling a unique ability to tap into more resilient and loyal customer segments.”
Air Canada also reported $5.8 billion in operating revenues in the first quarter of 2026, an 11.3 per cent increase from the previous year.
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“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 per cent,” said Rousseau in a press release.
In addition, the airline had a net loss of $16 million and adjusted loss per diluted share of $0.05. This was a $134 million improvement from the net loss of $150 million in 2025.
Instead of a full-year guidance for 2026, Air Canada provided its financial outlook for the second quarter, which it said is “more appropriate in the current environment.”
Air Canada is “assuming that the price of jet fuel will average at approximately C$1.28 per litre for the second quarter of 2026.”
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