Air Canada today reported its second quarter 2025 financial results.
«Air Canada’s second quarter 2025 results showcase the airline’s many strengths in the face of a challenging environment. We generated operating revenues exceeding $5.6 billion, up $113 million from the previous year. Operating income was $418 million, with an operating margin of 7.4%, and adjusted EBITDA was $909 million, with an adjusted EBITDA margin of 16.1%. Operationally, we had an excellent spring, leading all major North American carriers in on-time performance for both May and June, which corresponded with strong gains in customer service scores. We remained disciplined and consistent in executing on a long-term plan that is rooted in Air Canada’s proven commercial strategy, while navigating macroeconomic uncertainty and geopolitical tensions. We have strategically redirected capacity to high-demand markets and captured demand for premium services, leveraging the breadth and strength of our global network. Our results were further lifted by strong performances by Air Canada Cargo, Air Canada Vacations, and Aeroplan—each a key pillar of our diversified business,» said Michael Rousseau, President and Chief Executive Officer of Air Canada.
«Our distinctive product offerings and the unwavering dedication of our employees were recognized at the Skytrax World Airline Awards. We are proud to have been recognized as the Best Airline in North America and as the sole North American carrier ranked among the global top 20. Additionally, we have received additional accolades, including Best Cabin Crew in both Canada and North America. I extend my heartfelt thanks to our employees for their commitment to excellence and professionalism in safely transporting our 11.6 million customers this quarter with care and class.»
«A key pillar of our strategy is delivering value to our shareholders through effective capital allocation programs. Building on the successful reinstatement in 2024 of our normal course share purchase program, we completed a $500 million substantial issuer bid during the quarter, purchasing 26.6 million shares for cancellation. Since then, we have also fully repaid our convertible notes in cash upon maturity in July. As we look ahead, we are excited about our upcoming fleet additions and the opportunities they will unlock. Our confidence in our business outlook remains solid and we are reaffirming our financial guidance for the full year 2025.»
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*Adjusted CASM, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted EBITDA margin, leverage ratio, net debt, adjusted pre-tax income (loss), adjusted net income (loss), adjusted earnings (loss) per share, and free cash flow are referred to in this news release. Such measures are non-GAAP financial measures, non-GAAP ratios, or supplementary financial measures, are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results. Refer to the «Non-GAAP Financial Measures» section of this news release for descriptions of these measures, and for a reconciliation of Air Canada non-GAAP measures used in this news release to the most comparable GAAP financial measure. Leverage ratio of 1.0 at June 30, 2024. Adjusted EBITDA and operating income for the trailing 12-month periods ended June 30, 2025 were $3.515 billion and $1.096 billion, respectively ($3.718 billion and $1.971 billion, respectively for the trailing 12-month periods ended June 30, 2024). |
Second Quarter 2025 Financial Results
- Operating revenues of $5.632 billion
- Operating expenses of $5.214 billion
- Operating income of $418 million with an operating margin of 7.4% and adjusted EBITDA of $909 million with an adjusted EBITDA margin of 16.1%
- Adjusted pre-tax income of $300 million
- Net income of $186 million and diluted earnings per share of $0.51
- Adjusted net income of $207 million and adjusted earnings per diluted share of $0.60
- Adjusted CASM* of 14.4 cents
- Net cash flows from operating activities of $895 million and free cash flow of $183 million…
