“Strength in a Challenging Environment:” Air Canada’s Q2 Results

Air Canada’s has reported its second quarter 2025 financial results, which President and CEO Michael Rousseau says showcase “the airline’s many strengths in the face of a challenging environment.”

One of those challenges is labour peace — the results come during a week when the airline’s flight attendants vote on a strike mandate.

Despite potential headwinds, the airline generated operating revenues exceeding $5.6 billion in Q2, up $113 million from the previous year. Operating income was $418 million, with an operating margin of 7.4%, and adjusted EBITDA was $909 million, with an adjusted EBITDA margin of 16.1%. 

“Operationally, we had an excellent spring, leading all major North American carriers in on-time performance for both May and June, which corresponded with strong gains in customer service scores,” Rousseau said. “We remained disciplined and consistent in executing on a long-term plan that is rooted in Air Canada’s proven commercial strategy, while navigating macroeconomic uncertainty and geopolitical tensions.”

The CEO said AC has strategically redirected capacity to high-demand markets and captured demand for premium services (premium revenues were up 5% during the quarter), leveraging the breadth and strength of its global network. He added that results were further lifted by strong performances by Air Canada Cargo, Air Canada Vacations, and Aeroplan. 

“Our distinctive product offerings and the unwavering dedication of our employees were recognized at the Skytrax World Airline Awards,” Rousseau said. “We are proud to have been recognized as the Best Airline in North America and as the sole North American carrier ranked among the global top 20.”

Air Canada Second Quarter 2025 Financial Results Highlights

• Operating revenues of $5.632 billion
• Operating expenses of $5.214 billion
• Operating income of $418 million with an operating margin of 7.4% and adjusted EBITDA of $909 million with an adjusted EBITDA margin of 16.1%
• Adjusted pre-tax income of $300 million
• Net income of $186 million and diluted earnings per share of $0.51
• Adjusted net income of $207 million and adjusted earnings per diluted share of $0.60
• Adjusted CASM of 14.4 cents
• Net cash flows from operating activities of $895 million and free cash flow of $183 million

Third Quarter Outlook

For the third quarter of 2025, Air Canada plans to increase its Available Seat Mile capacity between 3.25% and 3.75% from the same quarter in 2024.

Air Canada says its guidance is subject to important risks and uncertainties, including in relation to statements or actions by governments and uncertainty relating to the imposition of (or threats to impose) tariffs on Canadian exports or imports and their resulting impacts on the Canadian, North American and global economies and travel demand.