Air Canada profits slump after summer peak cabin crew strike

Air Canada suffered a drop in profits over the summer peak as a strike by cabin crew grounded operations.

 

Canada’s largest airline saw adjusted pre-tax profits fall to C$329 million (£179 million) from C$985 million (£535 million) in the same third quarter to September last year.

 

The airline also narrowed its core profit forecast for the year.

 

Air Canada faced a major shutdown over the summer as almost 10,000 flight attendants walked out for four days in a dispute over pay and compensation.

 

Most of the carrier’s fleet was grounded as a result, causing major disruption to passengers due to more than 3,200 flight cancellations in August.

 

The airline previously estimated a revenue impact of C$430 million (£77.5 million) mainly due to refunds issued to affected passengers, customer compensation and a reduction in bookings. 

 

Chief executive Michael Rousseau said: "We delivered a solid third quarter financial and operating performance, after adjusting for the labour disruption, which occurred at the peak of the summer season. 

 

"We deeply regret that the disruption significantly affected our customers. 

 

“The entire company worked extremely hard to assist those whose travel was disrupted and to quickly return our operations to normal, and we were also flexible with customer goodwill policies. I thank all employees for their commitment to customer service and operational excellence.”

 

He described the financial results, after adjusting for the strike impact, as meeting expectations, with strength in the Atlantic market and in premium cabins. 

 

“Operational metrics, such as on-time performance and net promoter score, exceeded both internal targets and last year’s levels for the quarter and year-to-date. Our underlying business fundamentals are very strong,” Rousseau added. 

 

“There is good booking momentum in the fourth quarter and early positive indicators into the first quarter of 2026. 

 

“Our trans-border business trends [with the US] are largely stable and on par with the first half of 2025.

 

“We have exciting times ahead of us with growth plans fuelled by key strategic initiatives and new state-of-the-art efficient aircraft. 

 

“Our focus over the next 12 months is on preparing the airline to grow and expand margins as we transform our fleet with the arrival of best-in-class aircraft across the portfolio and a revitalised Rouge offering. 

 

“We will also continue to improve our cost structure through productivity gains, operational efficiencies and constant cost discipline to mitigate near term pressures.”