Air Canada Swings to Profit in ‘Solid’ 4th Quarter
by Bruce Parkinson
Air Canada is encouraged by its Q4 and full year 2025 results.
With record revenues of $5.8 billion in the fourth quarter of 2025, Air Canada posted net income of $296 million, a turnaround from a loss of $641 million during the same period in 2024.
For the full year 2025, AC generated operating income of $918 million and adjusted EBITDA of $3.1 billion.
“Air Canada finished 2025 with a solid fourth quarter, delivering record revenues of $5.8 billion and achieving strong year‑over‑year earnings growth,” said president & CEO Michael Rousseau.
“These results reflect our disciplined actions throughout the year, the strength of our commercial strategy, the loyalty of our customers, and — above all — the dedication and professionalism of our employees. I want to sincerely thank them for their hard work through a demanding year and through the severe cold and record snowfall of recent storms.”
Rousseau continued: “We delivered these results while effectively managing shifting demand trends, a labour disruption in the summer, and continued macroeconomic and geopolitical uncertainty. We maintained our focus on operational reliability, advanced our cost‑reduction initiatives, and generated solid free cash flow, reinforcing the resilience of our business model and supporting disciplined capital allocation, including meaningful share repurchases.”
Looking ahead to this year, Rousseau said the airline is encouraged by “strong momentum in bookings” and the opportunities created by fleet investments.
“At the same time, we remain sharply focused on cost management, productivity, cash generation, and preserving balance‑sheet flexibility. Air Canada enters 2026 from a position of strength, and we remain committed to creating sustained value for our customers, employees, and shareholders.”
For the full year 2025, Air Canada saw operating revenues of $22.372 billion, operating income of $918 million with an operating margin of 4.1% and adjusted EBITDA of $3.124 billion with an adjusted EBITDA margin of 14.0%. Net income for the year was $644 million.
The company has a free cash flow of $747 million and long-term debt and lease liabilities of $11.576 billion.
For the first quarter of 2026, AC plans to increase its operated capacity by about 2.5% from the same quarter in 2025.
