Air Canada cuts 2026 profit outlook again on fuel costs

Air Canada cut its full-year 2026 adjusted EBITDA guidance to C$2.4 billion to C$2.7 billion, from C$2.9 billion to C$3.2 billion in August, after fuel expense rose C$906 million year over year in the third quarter.

Why it matters: It is the latest North American carrier to lower 2026 guidance on jet fuel prices that fare increases cannot fully offset, after similar cuts at Southwest and American earlier this month.

Data as of Air Canada's own third-quarter 2026 results release, published October 29, 2026 via GlobeNewswire; all figures are the company's. Developing item.

Air Canada cut its full-year 2026 adjusted EBITDA guidance to C$2.4 billion to C$2.7 billion, down from C$2.9 billion to C$3.2 billion set on August 11, and cut its free cash flow outlook to break-even, plus or minus C$150 million, from C$200 million to C$500 million. The airline raised its fourth-quarter jet fuel assumption to about C$1.72 per litre from C$1.29, and said it now expects to offset only about 70 percent of the incremental fuel expense in the quarter, down from 100 percent.

Third-quarter operating revenue was a record C$6.984 billion and adjusted EBITDA was C$936 million, even as fuel expense rose C$906 million year over year and fuel prices ran 10 cents per litre above the airline’s expectations for the quarter.

Air Canada cuts 2026 profit outlook again on fuel costs

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