Air Canada financial results for the fourth quarter and full year 2025 show a return to profitablity, alongside an outlook for the full year 2026.
Fourth Quarter:
- Operating Revenue: Reached a record $5.77bn, a 6.9% increase year-over-year.
- Net Income: Reported at $296m ($1.00 per diluted share), compared to a loss in the previous year.
- Adjusted EBITDA: Rose 25% to $867m, with a 15.0% margin.
- Adjusted Earnings Per Share (EPS): $0.65, significantly beating analyst estimates of $0.29.
- Free Cash Flow: Negative $478m for the quarter.
Full Year 2025 Results
- Total Operating Revenue: $22.37bn, up 1% from 2024.
- Operating Income: $918m, a sharp turnaround from a $345m loss in 2024.
- Net Income: $644m ($1.86 per diluted share).
- Adjusted EBITDA: $3.12bn, exceeding previous company guidance.
- Free Cash Flow: $747m generated for the full year.
- Shareholder Returns: Deployed over $850m in share buybacks during the year.
Outlook and Strategic Updates
- Financial Guidance: Forecasts 2026 Adjusted EBITDA between $3.35bn and $3.75bn.
- Capacity Growth: Plans to increase ASM (Available Seat Mile) capacity by 3.5% to 5.5%.
- Fleet Modernization: Announced the acquisition of Airbus A350-1000 widebody aircraft to support international growth.
- Sale-Leaseback: $1bn in sale-leaseback transactions in 2026.
