Air Canada suspends 2026 full-year guidance amid uncertain jet fuel costs
The carrier said it expects to offset 50% to 60% of added fuel costs through fare increases and other commercial actions.
- On Thursday, Air Canada suspended its 2026 full-year profit forecast, citing uncertainty over jet fuel costs caused by the war in Iran.
- War-Related supply constraints have nearly doubled fuel prices since late February, as tanker traffic through the Strait of Hormuz remains stalled, trapping airlines between soaring expenses and fixed-fare tickets.
- To manage costs, the airline has implemented fare increases, raised checked baggage fees to $45, and cut less profitable routes, while pausing share buybacks to protect cash flow.
- Projecting adjusted EBITDA between $575 million and $725 million for the second quarter, CEO Michael Rousseau expects to offset 50% to 60% of incremental fuel expenses through commercial and cost actions.
- Despite fuel-driven fare increases, Rousseau stated the airline sees "strong demand" across its network, though rising costs are "testing demand resilience across commercial aviation.
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Air Canada Q1 Earnings Call Highlights
Air Canada (TSE:AC) reported a stronger first quarter for 2026, highlighting record first-quarter adjusted EBITDA and improved commercial performance, while also cautioning investors about heightened jet fuel volatility that led the airline to suspend its full-year outlook. Management opens call wi
Air Canada suspended its financial projection for the year following the shooting in the prices of the aviation fuel caused by the war in Iran. Spirit Air: company actions are taking off after news that it would be preparing to close operations End of scale 6x1: Motta calls for extra Chamber sessions to speed up the processing of PEC — Since the end of February, the situation in the Middle East and the high global fuel prices have created a sign…
Air Canada has suspended its outlook for this year. The airline is doing this due to rising jet fuel prices resulting from the war in Iran.
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