Air Canada ‘effectively managing through turbulent period’ 

Air Canada insisted it was “effectively managing through a turbulent period” despite falling into increased losses in the first quarter of the year.

An adjusted pre-tax loss of C$215 million compared with a deficit of C$94 million in the equivalent three months in 2024.

The airline reported an operating loss of C$108 million compared to a profit of C$11 million in the same period last year.

Operating revenues fell by C$30 million to C$5.2 billion on an operating capacity decline of 0.4%.

The carrier trimmed its full year earnings (ebitda) guidance from C$3.4 billion-C$3.8 billion to C$3.2 billion-C$3.6 billion.

The update accounts for “recent trends in the commercial environment and fuel price expectations”. 

Chief executive  Michael Rousseau said: “Our first quarter 2025 results show Air Canada is effectively managing through a turbulent period. 

“Total operating revenues of nearly C$5.2 billion were stable year-over-year on similar capacity. 

“Winter is always a challenging test, yet in the quarter we made progress in on-time performance, baggage delivery and customer satisfaction. 

“Most importantly, we carried our nearly 10.8 million passengers safely and I thank all employees for their hard work taking care of our customers.

“Although advance ticket sales grew in line with our expectations in the period, we anticipate market conditions will remain unsteady with an uncertain economic outlook. 

"In response, we are prudently moderating our expectations and concentrating on controllable factors such as cost management and strategic capacity adjustments to ensure strong performance in key financial metrics.

“Our results demonstrate that we have a solid and diversified commercial foundation, a disciplined capital allocation strategy, and a skilled and dedicated team.” 

He added: “We are encouraged that despite some shifts in certain markets, overall demand trends remain steady.”