Air Canada has decided to suspend its full-year financial outlook for 2026, pointing to ongoing volatility in jet fuel prices and broader global uncertainty. The announcement came alongside the airline’s first-quarter earnings report released Thursday.
Chief Executive Officer Michael Rousseau highlighted a series of challenges faced during the opening months of the year, including extreme winter conditions, ice storms, disruptions to popular sun destinations, and geopolitical tensions in the Middle East. He emphasized that the rising cost of jet fuel driven in part by the ongoing conflict in the region has created significant pressure across the aviation industry.
According to Rousseau, these factors represent a broader industry-wide issue, influencing how airlines manage capacity, pricing strategies, and operational risks. He described the situation as a major external shock rather than a company-specific concern.
Mark Galardo, the airline’s Executive Vice-President and Chief Commercial Officer, noted that Air Canada has been actively adjusting to the changing environment. The company was among the first to introduce fare increases as fuel costs began to climb. Despite these pressures, he said demand remains strong across various markets and customer segments, allowing the airline to maintain a competitive edge.
Financially, Air Canada reported a solid first quarter. Operating revenues reached $5.8 billion, reflecting an 11.3 percent increase compared to the same period last year. The airline posted operating income of $117 million, marking a significant turnaround of $225 million from 2025. Adjusted EBITDA rose sharply by 61 percent to a record $623 million.
While the company still reported a net loss of $16 million, this represents a notable improvement from the $150 million loss recorded a year earlier. Adjusted loss per diluted share also improved to $0.05.
Given the uncertain outlook, Air Canada has opted to provide guidance only for the second quarter instead of the full year. The airline estimates that jet fuel prices will average around C$1.28 per litre during this period, reflecting continued caution in an unpredictable global environment.
