MONTRÉAL, Sept. 24, 2025/ CNW/– Air Canada today offered specific estimated outcomes for the 3rd quarter of 2025 and upgraded complete year 2025 assistance, which was put on hold in August 2025 Air Canada likewise supplied a quote of the economic influence of the labour disturbance in August by the Canadian Union of Public Worker (CUPE), the union representing cabin staff.
Q 3 2025 Estimated Outcomes
Air Canada prepares for, for the quarter ending September 30, 2025:
- Run ability to decrease by roughly 2 % from the very same period in 2024 as a result of the cancellation of more than 3, 200 flights;
- Operating earnings in between $ 250 million and $ 300 million, that includes approximately $ 175 million from single non-cash pension plan changes and other labour relevant charges and changed EBITDA * between $ 950 million and $ 1 billion. Air Canada’s operating earnings totalled $ 1 040 billion and readjusted EBITDA $ 1 523 billion for the third quarter of 2024
* Adjusted EBITDA (incomes prior to interest, taxes, depreciation, and amortization), changed CASM and complimentary capital are referred to in this news release. Such actions are non-GAAP financial measures, non-GAAP ratios, or supplementary financial measures, are not acknowledged steps for financial declaration discussion under GAAP, do not have standardized meanings, may not be comparable to comparable actions offered by various other entities and should not be taken into consideration an alternative to or superior to GAAP results. Refer to the “Non-GAAP Financial Measures” section of this news release for descriptions of these actions, and for a settlement of Air Canada non-GAAP actions utilized in this press release to the most similar GAAP monetary procedure.
Labour Disruption Influences
During the collective bargaining duration with CUPE, Air Canada created detailed strategies to ensure the risk-free and orderly unwind and restart of its procedures in case of a labour disruption. When CUPE notified of its intent to strike, Air Canada acted on these backup plans and inevitably terminated over 3, 200 trips in August 2025
Financial impact. The monetary effect of the work interruption, which included an illegal strike, is estimated to be $ 375 million in running income and changed EBITDA *. This amount is originated from the mix of three components. Initially, the profits effect is estimated to be $ 430 million, generally as a result of refunds released to customers, customer payment and less than expected travel reservations in August and very early September. Second, $ 145 million in expenses are approximated to have been avoided due to much less flying activity, mainly attributable to reduced fuel costs. Third, the price evasion was partly countered by an approximated $ 90 million of incremental expenses associated with compensations to customers for out-of-pocket expenditures and labour-related operating expense.
Affected consumers. Air Canada deeply regrets the impact of the disruption on its customers and remains committed to solving every claim sent by influenced consumers swiftly and accurately, having done so for greater than 60, 000 cases to day. Air Canada continues to upgrade its progression and to supply details on its goodwill policies at the control panel available at www.aircanada.com/action
Settlement with CUPE. Air Canada and CUPE are continuing to mediation to finalize the wage section of the four-year tentative contract. No labour disruption can be started by either party during the arbitration process or the term of the brand-new agreement.
Updated Full Year 2025 Overview
Air Canada is restoring and upgrading its complete year 2025 monetary and ability support to reflect the economic and operational effect of the CUPE work interruption and its assumptions for the remainder of 2025, as follows:
| Metric | Updated 2025 Assistance | Prior 2025 Support (Put On Hold on August 18, 2025 |
| Readjusted EBITDA * | $ 2 9 billion to $ 3 1 billion | $ 3 2 billion to $ 3 6 billion |
| ASM ability | 0. 5 % to 1 5 % increase versus 2024 | 1 % to 3 % increase versus 2024 |
| Adjusted CASM * | 14 60 cents to 14 70 cents | 14 25 cents to 14 50 cents |
| Totally free cash flow * | -$ 50 million to $ 150 million | Break even +/- $ 200 million |
* Describe the “Non-GAAP Financial Measures” area of this press release for summaries of these steps, and for a reconciliation of Air Canada non-GAAP steps utilized in this press release to one of the most equivalent GAAP financial step.
Major Assumptions
Air Canada made assumptions in offering its guidance– including a marginal Canadian GDP development for 2025 Air Canada currently thinks that the Canadian buck will certainly trade, generally, at C$ 1 39 per U.S. buck for the complete year 2025 which the rate of jet fuel will certainly average C$ 0. 92 per litre for the full year 2025
Air Canada’s quotes for the 3rd quarter of 2025 and the guidance for the full year 2025 comprise progressive information within the meaning of relevant safeties regulations and are subject to crucial threats and unpredictabilities. Please see the conversation below under Care Relating To Progressive Info.
All figures and information indicated herein with respect to the third quarter finishing September 30, 2025 mirror quotes relative to such outcomes based upon presently offered details, and have not been assessed by the auditors. Air Canada’s actual outcomes for the 3rd quarter 2025 may vary from these price quotes as the acting duration is not yet full and remains based on conclusion of shutting treatments, final changes, management’s testimonial of outcomes and conclusion of the interim unaudited combined financial declarations. Other developments may occur between now and the time the economic outcomes are wrapped up, and results could be materially various than the estimates stated here. These estimates will be supplemented by the 3rd quarter 2025 combined economic information which will be launched in accordance with applicable needs.
Non-GAAP Financial Steps
Below is a summary of particular non-GAAP economic actions and proportions utilized by Air Canada to give visitors with extra details on its economic and operating performance. Such measures are not identified measures for monetary statement presentation under GAAP, do not have standard significances, might not be comparable to comparable measures offered by various other entities and ought to not be thought about an alternative to or above GAAP results. The non-GAAP financial actions or ratios explained in this area commonly have exclusions or modifications that include one or more of the adhering to qualities, such as being very variable, tough to task, unusual in nature, considerable to the outcomes of a particular period or not a sign of previous or future operating outcomes. These items are omitted because the business believes these might distort the evaluation of specific organization fads and provide relative evaluation across periods less significant and their exclusion usually enables a much more meaningful evaluation of Air Canada’s general expenses efficiency and might permit a much more purposeful comparison to other airlines.
Air Canada omits the result of impairment of properties, if any, when calculating adjusted CASM and changed EBITDA, as it might misshape the evaluation of specific organization fads and provide comparative analysis throughout durations or to various other airlines less purposeful.
A fee of $ 34 million was tape-recorded in the 3rd quarter of 2024 in various other business expenses associated with approximated expenses associated with legal lease commitments. Air Canada omitted this expense in computer readjusted CASM and adjusted EBITDA.
Air Canada recorded a single pension past service price of $ 490 million in the fourth quarter of 2024 as a result of specific pension modifications made combined with the validated 2024 collective agreement with its pilots. Air Canada excluded this fee in computing changed CASM and readjusted EBITDA.
In the 3rd quarter of 2025 Air Canada expects to videotape a single pension plan past service cost and other work associated fees of roughly $ 175 million, consisting of from the pension plan modifications made together with the tentative arrangement reached with CUPE. Air Canada has excluded this cost in computing its estimated 3rd quarter 2025 changed EBITDA and its support for the complete year 2025 in regard of changed CASM and adjusted EBITDA.
Changed CASM
Air Canada utilizes adjusted CASM to examine the operating and cost efficiency of its ongoing airline company service without the effects of aircraft gas cost, the expense of ground packages at Air Canada Vacations, truck expenses and other things talked about above. These things might misshape the evaluation of certain service trends and make comparative evaluation across periods much less meaningful and their exclusion generally permits a more significant evaluation of Air Canada’s business expenses performance and might permit an extra significant contrast to that of other airline companies.
In computing readjusted CASM, aircraft fuel expense is left out from running expense results as it changes extensively relying on many aspects, consisting of international market conditions, geopolitical occasions, jet gas refining prices and Canada/U. S. money exchange prices. Air Canada also incurs costs associated with ground packages at Air Canada Vacations which some airline companies, without comparable excursion driver businesses, might not sustain. On top of that, these prices do not create ASMs and as a result leaving out these prices from running expense results offers a more purposeful comparison throughout durations when such prices might vary.
Air Canada likewise incurs expenses related to the operation of freighter airplane which some airlines, without comparable cargo companies, may not incur. Air Canada had 6 Boeing 767 committed truck airplane in solution as at December 31, 2024, and 7 as at December 31, 2023 These expenses do not produce ASMs and consequently leaving out these costs from operating cost results offers a more significant comparison of the guest airline company organization across durations.
The following tables provide the modified CASM reconciliation to GAAP operating budget for the periods showed.
| (Canadian dollars in millions, except where indicated) | Complete Year | |||
| 2024 | 2023 | |||
| Operating expense– GAAP | $ | 20, 992 | $ | 19, 554 |
| Adjusted for: | ||||
| Aircraft fuel | (5, 118 | (5, 318 | ||
| Ground bundle costs | (782 | (720 | ||
| Freighter costs (excluding fuel) | (163 | (157 | ||
| Stipulation for contractual lease obligations | (34 | — | ||
| Pension modifications | (490 | — | ||
| Operating expense, readjusted for the above-noted products | 14, 405 | 13, 359 | ||
| ASMs (millions) | 104, 381 | 99, 012 | ||
| Adjusted CASM (cents) | cents | 13 80 | cents | 13 49 |
Adjusted EBITDA
Changed EBITDA (profits before rate of interest, tax obligations, depreciation, amortization and problems) is typically utilized in the airline sector and are used by Air Canada as a way to check out operating outcomes before rate of interest, taxes, depreciation, amortization and disability and other products reviewed above. These items can differ dramatically amongst airline companies because of distinctions in the method airline companies fund their airplane and various other assets.
Readjusted EBITDA is resolved to GAAP operating revenue (loss) as adheres to:
| (Canadian dollars in millions) | 3rd Quarter | Complete Year | ||||||
| 2025 (Estimated) | 2024 | 2024 | 2023 | |||||
| Running revenue– GAAP | $ | 250 – 300 | $ | 1, 040 | $ | 1, 263 | $ | 2, 279 |
| Add back: | ||||||||
| Devaluation and amortization | 525 | 449 | 1, 799 | 1, 703 | ||||
| EBITDA | $ | 775 – 825 | $ | 1, 489 | $ | 3, 062 | $ | 3, 982 |
| Add back: | ||||||||
| Stipulation for legal lease obligations | — | 34 | 34 | — | ||||
| Pension amendments and various other labour relevant fees | 175 | — | 490 | — | ||||
| Changed EBITDA | $ | 950 – 1, 000 | 1, 523 | 3, 586 | 3, 982 | |||
Free Capital
Air Canada utilizes free capital as an indication of the financial strength and performance of its service, suggesting the quantity of cash Air Canada can generate from procedures and after capital investment. Totally free cash flow is calculated as web capital from operating activities minus additions to residential or commercial property, tools, and intangible properties, and is net of profits from sale and leaseback transactions.
The table listed below reconciles totally free cash flow to web cash flows from (made use of in) operating tasks for the periods suggested.
| (Canadian bucks in millions) | Complete Year | |||
| 2024 | 2023 | |||
| Internet cash flows from operating activities | $ | 3, 930 | $ | 4, 320 |
| Additions to building, devices, and intangible possessions | (2, 636 | (1, 564 | ||
| Totally free capital (1 | $ | 1, 294 | $ | 2, 756 |
The tables listed below present relative numbers for the 12 -month durations finishing December 31, 2024 and 2023, of Air Canada’s full-year 2025 advice.
| (Canadian dollars in millions, except where indicated) | 2024 Outcomes | 2023 Outcomes |
| ASM Capacity | 104 381 billion | 99 012 billion |
| Changed CASM (cents) | 13 80 cents | 13 49 cents |
| Operating costs | $ 20 992 billion | $ 19 554 billion |
| Readjusted EBITDA | $ 3 586 billion | $ 3 982 billion |
| O perating earnings | $ 1 263 billion | $ 2 279 billion |
| F ree cash flow | $ 1 294 billion | $ 2 756 billion |
| N et cash flows from operating tasks | $ 3 930 billion | $ 4 320 billion |