Air Canada (TSE:AC)
TSX:AC
Earnings Data
Report Date
May 01, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
-0.44Last Year’s EPS
-0.45Same Quarter Last Year
Moderate Buy
Based on 12 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong execution in 2025 with an exceptional Q4: record quarterly revenues and EBITDA, robust cash generation, improved operations, and diversified revenue streams (international, Sixth Freedom, cargo, Aeroplan). Management acknowledged notable near-term headwinds—higher CASM driven by labor and depreciation, the carryover impact of summer labor stoppages, a peak CapEx cycle and transitional fleet timing that will pressure 2026 free cash flow and unit costs. However, leadership presented clear mitigation plans (cost reduction programs, sale-and-leasebacks, fleet modernization, pricing/route strategy) and confidence in medium-term margin and cash generation improvement driven by network scale and new aircraft economics. Overall, the positive financial results, strong balance sheet and strategic positioning materially outweigh the transitional cost challenges described.Company Guidance
Record Q4 Revenue and Profitability
Q4 revenues reached $5.8 billion, up nearly 7% year-over-year, and Q4 adjusted EBITDA was a record $867 million (approximately a 25% increase YoY), representing a 15% margin in the quarter.
Full-Year Revenue, EBITDA and Margins
2025 total revenues of $22.4 billion, up 1% YoY, with full-year adjusted EBITDA of about $3.1 billion and a 14% margin, exceeding guidance.
Strong Cash Generation and Shareholder Returns
2025 free cash flow of $747 million and cash from operations of $3.7 billion (over 100% conversion of adjusted EBITDA). Returned more than $850 million to shareholders in 2025 and over $1.3 billion since 2024 through buybacks and retirements.
Revenue Diversity and International Strength
International/network strength drove Q4 outperformance: passenger revenues hit a Q4 record of $5.0 billion with an all-time Q4 load factor of 85%. Sixth Freedom revenues grew 10% YoY and nearly 90% of Q4 revenue uplift was from international performance.
Ancillary Businesses Contributing to Growth
Other revenues increased 15% YoY; cargo revenues rose 4% YoY with Air Canada Cargo surpassing $1 billion in revenues (first time since 2022). Aeroplan third-party gross billings grew ~7% and Aeroplan reached over 10 million active members.
Premium and Corporate Demand Momentum
Premium revenues grew 2% YoY and accounted for about 30% of passenger revenue (outpacing economy by 3 percentage points). Corporate revenue accelerated, up 8% in Q4 YoY.
Balance Sheet Strength and Liquidity
Year-end liquidity of $7.5 billion, net leverage of 1.7x, and active capital allocation discipline with targeted net CapEx (~12% of revenues guidance) and planned sale-and-leaseback program to manage fleet ownership and flexibility.
Fleet Modernization and Network Growth
Planned 35 aircraft deliveries in 2026 including first A321XLRs and 787-10s; firm order for 8 A350-1000s (deliveries 2030–2032) to expand long-haul capability; 13 new destinations added in 2025 across four continents.
Operational Improvements and Industry Recognition
Improved on-time performance and Net Promoter Score; named Best Airline in North America (Skytrax 2025) and the only North American carrier in the global top 20, demonstrating customer satisfaction and brand strength.
2026 Financial Outlook
Guidance for 2026: adjusted EBITDA of $3.35–$3.75 billion; free cash flow expected $400–$800 million; adjusted CASM guidance $0.1505–$0.1535; assumptions include jet fuel at CAD 0.90/l and FX CAD 1.36/USD with ~17% of H1 fuel hedged around CAD 0.69/l.
TSE:AC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TSE:AC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 12, 2026 | C$19.52 | C$20.25 | +3.74% |
Nov 04, 2025 | C$18.76 | C$18.75 | -0.05% |
Jul 29, 2025 | C$19.34 | C$19.67 | +1.71% |
May 08, 2025 | C$15.30 | C$17.54 | +14.64% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Air Canada (TSE:AC) report earnings?
Air Canada (TSE:AC) is schdueled to report earning on May 01, 2026, Before Open (Confirmed).
What is Air Canada (TSE:AC) earnings time?
Air Canada (TSE:AC) earnings time is at May 01, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TSE:AC EPS forecast?
TSE:AC EPS forecast for the fiscal quarter 2026 (Q1) is -0.44.
