Air Canada's Sky-High Performance: Strong Q3 2025 Estimates Fuel Optimistic Full-Year Outlook

MONTREAL, QC – Air Canada (TSX: AC) today announced its estimated financial results for the third quarter of 2025, alongside an upward revision to its full-year 2025 guidance. The airline reported a robust performance, driven by sustained strong demand for air travel, effective capacity deployment, and diligent cost management, signaling a healthy operational environment and positive trajectory for the coming months.

For the third quarter ended September 30, 2025, Air Canada anticipates total operating revenues to be approximately CAD 6.5 billion, marking a significant increase compared to the same period in the previous year.

This growth is largely attributed to a surge in passenger revenue, reflecting strong load factors across its extensive network. The airline estimates adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to be in the range of CAD 1.8 billion to CAD 2.0 billion, demonstrating enhanced profitability and operational efficiency.

Capacity, measured in Available Seat Miles (ASM), is expected to be up by approximately 12% to 14% compared to the third quarter of 2024, as Air Canada continued to strategically restore and expand its route network to meet burgeoning travel demand.

The estimated operating margin for the quarter is projected to be around 14% to 16%, underscoring the company's ability to manage costs effectively amidst a dynamic operating environment.

Building on these impressive Q3 estimates, Air Canada has updated its full-year 2025 financial guidance. The company now expects its full-year 2025 adjusted EBITDA to be between CAD 5.2 billion and CAD 5.6 billion, an increase from its previous guidance.

Total operating revenues for the full year are projected to be in the range of CAD 23.5 billion to CAD 24.5 billion, reflecting continued strong booking trends and optimized pricing strategies.

The updated guidance also includes a revised outlook for full-year 2025 capacity, with Air Canada now forecasting an increase of 10% to 12% in ASMs compared to 2024.

This measured expansion is designed to capitalize on market opportunities while maintaining operational integrity and customer experience. Capital expenditures for 2025 are expected to remain consistent with previous projections, between CAD 2.5 billion and CAD 2.7 billion, primarily allocated to fleet modernization and infrastructure enhancements.

Michael Rousseau, President and Chief Executive Officer of Air Canada, commented on the results, stating, "Our strong estimated performance in the third quarter of 2025 is a testament to the hard work and dedication of our entire team, as well as the enduring strength of demand for air travel.

We are particularly pleased with our revenue growth and solid adjusted EBITDA, which reflect our disciplined approach to capacity management and our ongoing efforts to enhance operational efficiency. The updated full-year guidance underscores our confidence in our strategic initiatives and our ability to deliver sustainable value for our shareholders."

Air Canada remains focused on optimizing its global network, investing in customer service enhancements, and advancing its sustainability objectives.

The airline anticipates continued positive momentum into the final quarter of 2025 and is well-positioned for further growth and profitability in the upcoming year.