Air Canada Q1 Earnings Call Highlights

2 weeks ago 16

MarketBeat

Sat, May 2, 2026 astatine 3:07 PM CDT 9 min read

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Key Points

Air Canada delivered a grounds Q1 with CAD 623 million adjusted EBITDA (up 61% YoY), operating revenues of CAD 5.8 billion and PRASM up 8% connected 2% much capacity, portion adjusted nonaccomplishment per stock improved to CAD 0.05.
The hose suspended full-year guidance owed to crisp pitchy substance volatility and gave Q2 guidance of CAD 575–725 million adjusted EBITDA based connected a $4.15/gal guardant substance curve, expecting to offset astir 50–60% of incremental substance costs done fares and outgo actions.
Cash procreation and balance-sheet moves were highlighted: grounds CAD 1.8 billion currency from operations, astir 8 million shares repurchased (CAD 142 million) but buybacks volition intermission to repay an August indebtedness maturity, with nett leverage astatine 1.4x EBITDA.
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Air Canada (TSE:AC) reported a stronger archetypal 4th for 2026, highlighting grounds first-quarter adjusted EBITDA and improved commercialized performance, portion besides cautioning investors astir heightened pitchy substance volatility that led the hose to suspend its full-year outlook.

Management opens telephone with information update

President and CEO Michael Rousseau opened the telephone by acknowledging a “recent incidental astatine LaGuardia Airport,” offering condolences to those affected and reiterating that “safety remains the instauration of our manufacture and our archetypal priority.” Rousseau said Air Canada remains engaged with U.S. and Canadian authorities arsenic the probe continues and thanked employees progressive successful the exigency response.

First-quarter show and commercialized drivers

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Rousseau said Air Canada delivered “year-over-year maturation of 61% successful adjusted EBITDA” successful the archetypal quarter, which helium attributed to disciplined execution successful a volatile environment. He besides pointed to advancement nether the company’s “New Frontiers objectives,” supported by a diversified network, premium positioning, and flexibility to align capableness with demand.

Chief Commercial Officer and President, Cargo Mark Galardo said first-quarter operating revenues and rider revenues roseate 11% year-over-year to CAD 5.8 billion and CAD 4.8 billion, respectively. Galardo said the gross show was “largely driven by an 8% summation successful PRASM connected 2% much capacity.”

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