by Jen Mallia
Last updated: 3:45 PM ET, Fri October 30, 2026
Air Canada has revised its earnings forecast in light of a third financial quarter that saw rising fuel prices cut into its predicted profits significantly. In the quarter that ended on Sept. 30, 2026, Air Canada only recovered half of its fuel costs, although it says that it expects to recover 70 percent of costs in Q4. Fuel prices are presently around $0.10 per litre than was predicted which has resulted in a steep increase in costs.
Despite having to revise its earnings forecast down from $2.9 - $3.2 billion (which was the estimate at the end of Q2) to $2.4 - $2.7 billion in earnings before interest, taxes, depreciation and amortization, the airline maintains it is in a strong position to deal with it.
“While we expect the challenging environment to persist, our strong financial position provides us with the flexibility to respond to near-term developments.” says John Di Bert, Executive Vice President and Chief Financial Officer. “We remain focused on executing on what we can control. Our diversified business model, broad global network and leading premium offering provide a solid foundation for navigating this environment and advancing our New Frontiers strategy.”
Di Bert cited Air Canada’s recent recognition as Best Airline in North America at the 2026 Skytrax World Airline Awards — the 10th time since 2010 — as reinforcement of the “strength of our offering and our commitment to customers.”
Unfortunately for passengers, the unlikeliness of fuel prices plateauing any time soon likely means higher airfares are on the horizon. “Fare increases remain the primary tool to offset a higher fuel environment,” Di Bert told CTV News.
The full report can be viewed at www.aircanada.com/media/investors.
(Photo Credit: Air Canada)
Topics From This Article to Explore
