Air Canada faced a challenging third quarter in 2025, navigating the aftermath of a significant three-day strike by flight attendants in August. This disruption led to over 3,000 flight cancellations, impacting the airline’s operating performance and customer experience during one of the busiest travel periods.
In the latest financial report, Air Canada recorded operating revenues of $5.774 billion, representing a 5% decline compared to the previous year. The airline’s net income saw a dramatic drop of nearly 90%, falling to $264 million from $2.04 billion in the same quarter of 2024, underscoring the adverse impact of labor disruptions.
Key Financial Metrics
- Operating Revenues: $5.774 billion (down 5% year-over-year)
- Operating Income: $284 million, with an operating margin of 4.9%
- Adjusted EBITDA: $961 million, equating to an adjusted EBITDA margin of 16.6%
- Net Income: $264 million, resulting in diluted earnings per share of $0.88
- Free Cash Flow: $211 million, with net cash flows from operating activities totaling $813 million
- Adjusted CASM: 13.99 cents
Labor Disruption Impact
The strike involving over 10,000 flight attendants significantly affected Air Canada’s operations, leading to steep revenue losses and prompting the airline to revise its full-year guidance downward. Despite these setbacks, Michael Rousseau, President and CEO, emphasized that the keystone business fundamentals of Air Canada remain strong, with on-time performance and customer satisfaction metrics reportedly exceeding both internal benchmarks and the results from the previous year.
Business Outlook
Looking ahead, Air Canada has adjusted its full-year 2025 guidance to project adjusted EBITDA in the range of $2.95 billion to $3.05 billion. The airline anticipates a modest 0.75% growth in available seat mile (ASM) capacity compared to the previous year. Positive booking trends have been noted for Q4 2025 and into Q1 2026, particularly on transatlantic routes and in premium travel classes, while transborder travel trends continue to show stability.
Air Canada is committed to ongoing investments in fleet upgrades and operational efficiencies, which are essential for enhancing future performance and maximizing shareholder value.
CEO Commentary
In his remarks, Michael Rousseau expressed gratitude towards the airline’s employees for their dedication during these trying times. He highlighted robust recovery efforts post-strike, noting encouraging forward bookings and a favorable outlook for the upcoming months, positioning Air Canada for potential growth.
For additional insights into Air Canada’s strategies and operational updates, visit Air Canada or refer to Industry News.
