Air Canada has released its financial performance for the fourth quarter and full year of 2025, along with projections for 2026, showcasing significant achievements and strategic resilience in a challenging economic landscape.
Record-Breaking Financial Performance
The airline reported record operating revenues of $5.8 billion in the fourth quarter of 2025, culminating in a total of $22.4 billion for the full year. This marks a substantial milestone, reflecting robust demand and effective commercial strategies. Additionally, Air Canada generated an operating income of $918 million and an adjusted EBITDA of $3.1 billion in 2025, underscoring its profitability and operational efficiency.
Strong Cash Flow and Shareholder Returns
In terms of liquidity, the company produced $3.7 billion in net cash flows from operations and $747 million in free cash flow during 2025. A portion of this financial strength was deployed strategically, with over $850 million allocated to share buybacks, enhancing shareholder value and demonstrating disciplined capital management.
Operational Excellence and Customer Recognition
Air Canada improved its operational performance and customer sentiment scores year over year, a testament to its focus on reliability and service quality. This dedication was recognized globally when the airline was named the Best Airline in North America at the 2025 Skytrax World Airline Awards, highlighting its commitment to excellence in the competitive aviation sector.
Outlook for 2026
Looking ahead, Air Canada is experiencing strong momentum in bookings compared to the previous year, signaling positive demand trends for 2026. The company remains focused on cost management, productivity enhancements, and cash generation to preserve balance-sheet flexibility. Michael Rousseau, President and Chief Executive of Air Canada, emphasized the resilience of the business model and the opportunities presented by ongoing fleet investments.
Challenges and Strategic Response
Despite facing shifting demand patterns, a labor disruption in the summer, and ongoing macroeconomic and geopolitical uncertainties, Air Canada maintained operational reliability and advanced cost-reduction initiatives. Rousseau acknowledged the dedication of employees, particularly during severe weather events, as a key factor in achieving these results.
As Air Canada enters 2026 from a position of strength, the airline is poised to create sustained value for customers, employees, and shareholders, leveraging its solid financial foundation and strategic foresight.
