Air Canada sees ‘strong 2026 booking momentum’ in recovery from last summer’s strike

Air Canada is recovering with “strong booking momentum” after a strike by cabin crew hit annual profits.  

  

The airline reported that adjusted pre-tax profits fell to C$658 million (£355 million) from C$1.4 billion (£744 million) in 2024 as operating revenues hit C$22.4 billion (£12.08 billion).

 

Earnings [ebitda] declined to C$3.1 billion (£1.67 billion) from C$3.5 billion (£1.89 billion).

 

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 Canadian flag 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: “Air Canada finished 2025 with a solid fourth quarter, delivering record revenues of C$5.8 billion and achieving strong year‑over‑year earnings growth.

 

“For the full year, we generated C$918 million (£495 million) in operating income and C$3.1 billion (£1.67 billion) in adjusted ebitda.

 

“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>”

 

He added: “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.

 

“As we look ahead to 2026, we are encouraged by the strong momentum in bookings and the opportunities created by our next phase of 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.”

 

The results came in the wake of an order for new ultra long range Airbus A350-1000 aircraft.