Air Canada reported C$6.3 billion in operating revenue for the second quarter of 2026, an 11% increase from the same period last year. The airline recorded an operating loss of C$215 million and adjusted EBITDA of C$719 million.
The airline generated C$651 million in net cash flow from operating activities and C$174 million in free cash flow during the quarter. It also reported C$12.8 billion in long-term debt and lease liabilities at the end of June.
For the full year, Air Canada has reinstated its 2026 guidance, including adjusted EBITDA of C$2.9 billion to C$3.2 billion and free cash flow of C$200 million to C$500 million. Capacity is expected to increase by 2.25% to 3.25% compared with 2025.
The airline has also entered into non-binding letters for up to C$2 billion in sale-and-leaseback transactions scheduled for 2026 and 2027. Air Canada has included C$1 billion of sale-and-leaseback transactions in its 2026 financial assumptions.
Air Canada said the transactions remain subject to definitive agreements and standard closing conditions. The airline’s 2026 outlook also assumes jet fuel prices of approximately C$1.38 per litre in the third quarter and C$1.3 per litre in the fourth quarter.
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Michael Rousseau, President and Chief Executive Officer of Air Canada, said the airline generated C$651 million in operating cash flow and C$174 million in free cash flow during the quarter, while maintaining a net leverage ratio of 1.7.
Air Canada also reported that capacity increased 0.3% year over year in the second quarter, with weather-related disruptions affecting flight completion rates. Fuel expense increased 49% year over year during the quarter.
