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(RTTNews) - Air Canada (AC.TO), the flag carrier of Canada, reported a net profit for the first quarter of fiscal 2026 on increased revenue, mainly due to a strong demand across the network. In addition, the airline has suspended its annual guidance, citing persisting conflict in the Middle East.
For the three-month period, the company reported a net income of C$48 million, or C$0.16 per share, compared with a net loss of C$102 million, or C$0.40 per share in the same period last year.
Excluding items, loss narrowed to C$16 million, or C$0.05 per share from C$150 million, or C$0.45 per share, in the previous year. This year's adjusted loss reflects a negative foreign exchange impact.
Operating profit was C$117 million, compared with a loss of C$108 million a year ago. Adjusted EBITDA surged to C$623 million from last year's C$387 million. Operating revenue was C$5.785 billion, up from C$5.196 billion in the previous year.
Revenue passenger miles moved up to 21.373 billion from last year's 19.887 billion. Available seat miles stood at 24.829 billion as against 24.240 billion in 2025. Passenger load factor was 86.1%, compared with the prior year's 82%. Passenger revenue per RPM increased to 22.4 cents from last year's 21.8 cents. Passenger revenue per ASM was 19.3 cents, versus 17.9 cents in the previous year. Revenue passengers carried improved to 10.960 million from 10.383 million a year ago.
Looking ahead, for fiscal 2026, the company has suspended its guidance. Air Canada said: "Given ongoing disruption in global energy markets caused by recent developments in the Middle East and the significant volatility in jet fuel prices, the reliability of any fuel forecast for the second half of 2026 is materially reduced. Air Canada has determined that suspending its full year 2026 guidance and providing financial guidance for the second quarter of 2026 is more appropriate in the current environment."
For the second quarter of fiscal 2026, the airline anticipates adjusted EBITDA of C$575 million to C$725 million. The company expects ASM capacity to move up 0.5% to 1% from the second quarter of fiscal 2025.
For the second quarter of fiscal 2025, the company had posted an adjusted EBITDA of $909 million, with available seat miles of 26.860 billion.
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