Q2 2026 Air Canada Earnings Call Transcript
Key Points
- Record Q2 operating revenues of $6.3 billion, up 11% year-over-year, with strong PRASM growth of 11%.
- Adjusted EBITDA of $719 million came in at the upper end of guidance despite higher fuel prices.
- Aeroplan minority investment valued at $10 billion, strengthening the balance sheet and accelerating the path to investment-grade rating.
- Strong demand across premium and corporate segments, with corporate revenues up 19% year-over-year.
- Cargo revenues surged 29% year-over-year, driven by strong yield growth and Sixth Freedom volume.
- Fuel costs increased 49% year-over-year, with only about 50% of the incremental expense recovered in Q2.
- Adjusted CASM rose 7% year-over-year, impacted by labor agreements and lower capacity growth.
- Capacity growth was below guidance at 0.3% due to weather disruptions and a measured approach.
- Full-year 2026 EBITDA guidance was reduced to $2.9-$3.2 billion from the original $3.35-$3.75 billion range.
- Free cash flow guidance was lowered to $200-$500 million, reflecting fuel headwinds and adjusted CapEx.
Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Air Canada second-quarter 2026 earnings conference Call. (Operator Instructions)
I would now like to turn the call over to Amanda Murray, Head of the Financial Planning, Strategy and Investor Relations. Please go ahead.
Thank you, Julianne. (spoken in foreign language) Welcome to Air Canada's second-quarter 2026 earnings call. Thank you for joining us today. On the call with me are Michael Rousseau, our President and Chief Executive Officer; Mark Galardo, our Chief Commercial Officer and President of Cargo; and John Di Bert, our Chief Financial Officer. Other members of our executive team are also with us and available for the Q&A portion of the call.
Before we begin, I remind everybody that today's discussion may contain forward-looking information regarding Air Canada's outlook, objectives and strategies. Actual results could differ materially due to various assumptions
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