Air Canada (TSX:AC.B) reported third quarter financial results below analyst expectations as the airline faced the impact of a labor disruption and softer international travel demand.
The company reported operating revenues of C$5.77 billion for the quarter ended September 30, 2025, a 5% decline from a year earlier and below the Wall Street consensus estimate of about C$5.83 billion.
Net income was C$264 million, or C$0.88 per share, compared with analyst expectations of roughly C$1.27 per share.
This marked a significant decline from C$2.04 billion or C$5.38 per share in the year-ago quarter.
Operating income for the quarter was C$284 million, representing a margin of 4.9%, while adjusted EBITDA reached C$961 million, with a margin of 16.6%.
The company’s results were significantly impacted by a three-day work stoppage by more than 10,000 flight attendants in August.
Air Canada said the labor disruption had a measurable impact on operations during the quarter but noted that booking trends and operational performance remain solid heading into the final quarter of the year.
“Our financial results, after adjusting for the strike impact, met our expectations, with strength in the Atlantic market and in our premium cabins,” Air Canada CEO Michael Rousseau said in a statement. “There is good booking momentum in the fourth quarter and early positive indicators into the first quarter of 2026.”
Air Canada updated its full-year 2025 outlook, now expecting adjusted EBITDA between C$2.95 billion and C$3.05 billion, and forecasting a modest 0.75% increase in capacity versus 2024. It expects free cash flow between C$0 and $200 million, compared to its earlier guidance range of C$50 million to C$150 million.
Shares of Air Canada slipped 0.3% to $18.70 following the release of its earnings report.