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Air Canada Posts Record 2025 Revenues and Maps Cautious Growth for 2026

Story Highlights
  • Air Canada achieved record 2025 revenues, solid profits, and strong cash generation.
  • The airline forecasts higher 2026 earnings with modest capacity growth and strict cost focus.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Air Canada Posts Record 2025 Revenues and Maps Cautious Growth for 2026

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An update from Air Canada ( (TSE:AC) ) is now available.

Air Canada reported record operating revenue of $5.8 billion for the fourth quarter of 2025 and $22.4 billion for the year, generating operating income of $918 million and adjusted EBITDA of $3.1 billion. The airline produced $3.7 billion in operating cash flow, $747 million in free cash flow, and deployed over $850 million toward share buybacks, while being named Best Airline in North America at the 2025 Skytrax World Airline Awards.

Management highlighted improved operational performance and customer sentiment, as well as resilience in the face of labour disruption, macroeconomic headwinds, and geopolitical uncertainty. Looking to 2026, Air Canada plans modest capacity growth, guided adjusted EBITDA of $3.35 billion to $3.75 billion, and remains focused on cost management, productivity, and balance-sheet flexibility, underscoring confidence in ongoing booking momentum and value creation for stakeholders.

The most recent analyst rating on (TSE:AC) stock is a Buy with a C$24.00 price target. To see the full list of analyst forecasts on Air Canada stock, see the TSE:AC Stock Forecast page.

Spark’s Take on TSE:AC Stock

According to Spark, TipRanks’ AI Analyst, TSE:AC is a Neutral.

Air Canada’s overall stock score reflects significant financial challenges, including high leverage and declining revenues. Technical analysis and valuation metrics offer limited support, while the earnings call provides some positive future outlooks but is overshadowed by recent disruptions and revenue declines.

To see Spark’s full report on TSE:AC stock, click here.

More about Air Canada

Air Canada is a leading North American airline providing passenger and cargo air transportation, with a strong focus on international and domestic routes from its Canadian hubs. The carrier competes in a cyclical, capital-intensive industry and emphasizes operational reliability, cost efficiency, and customer service to sustain its market position.

Average Trading Volume: 2,276,689

Technical Sentiment Signal: Buy

Current Market Cap: C$5.92B

For an in-depth examination of AC stock, go to TipRanks’ Overview page.

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