Air Canada stock faces lower earnings outlook as fuel costs rise

Published on 11/10/2026 at 18:41 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Air Canada stock faces a lower 2026 earnings outlook after fuel costs climbed. Strong travel demand lifted quarterly revenue, but profitability weakened.

Fuel pressure reshapes Air Canada outlook

Air Canada lowered its full-year earnings outlook as higher fuel costs weighed on profitability.
Strong travel demand supported record third-quarter revenue, while operating income and net income declined.
The airline combined debt repayment with a new share repurchase authorization.

AC, CA0089118776, Illustration mit AI erstellt.

On October 30, PAX reported that Air Canada had lowered its full-year earnings outlook as higher fuel costs weighed on profitability. The update followed a strong third quarter for demand, but higher operating costs reduced earnings quality.

Demand remains strong

Air Canada reported operating revenue of 6.984 billion Canadian dollars for the quarter ended September 30, up 21 percent from a year earlier. The airline carried 13.3 million passengers, while its load factor rose to 89.1 percent. Passenger yield increased 11 percent and cargo revenue grew 33 percent, according to PAX.

Fuel costs cut into profit

Operating income fell to 261 million Canadian dollars from 284 million Canadian dollars in the year-earlier quarter. Net income attributable to shareholders declined to 139 million Canadian dollars from 264 million Canadian dollars, while adjusted EBITDA slipped to 936 million Canadian dollars from 961 million Canadian dollars.

Fuel expense increased by 906 million Canadian dollars year over year. Air Canada now expects full-year adjusted EBITDA of 2.4 billion to 2.7 billion Canadian dollars, compared with its previous forecast of 2.9 billion to 3.2 billion Canadian dollars. The airline also moved its free-cash-flow outlook to approximately break-even, plus or minus 150 million Canadian dollars.

Buybacks add capital support

Air Canada said proceeds from an Aeroplan transaction helped repay 1.7 billion Canadian dollars of debt and complete an 800-million-Canadian-dollar share buyback. The Toronto Stock Exchange also approved a further repurchase authorization covering up to approximately 25.2 million shares between November 9, 2026, and November 8, 2027.

Air Canada stock traded at 14.73 euros on Lang & Schwarz at 18:34 CET on Tuesday, November 10, 2026.