Air Canada posts $264M Q3 profit, down from last year as labour stoppage takes a toll

Air Canada posted a third-quarter profit of $264 million, a sharp drop from the $2.04 billion it earned a year earlier.

The airline on Tuesday (Nov. 4) reported operating revenue of $5.77 billion, which is about five per cent lower than the $6.1 billion recorded a year ago.

The results for the quarter ending Sept. 30 reflect the impact of a three-day August walkout by more than 10,000 flight attendants, which halted operations and led to over 3,000 flight cancellations.

In September, Air Canada cut its full-year outlook and pegged the strike’s cost at $375 million.

READ MORE: Air Canada lowers 2025 forecast after $375M cost from flight attendant strike

“We delivered a solid third quarter financial and operating performance, after adjusting for the labour disruption, which occurred at the peak of the summer season,” said Michael Rousseau, president and CEO of Air Canada, in a statement.

“We deeply regret that the disruption significantly affected our customers. The entire company worked extremely hard to assist those whose travel was disrupted and to quickly return our operations to normal, and we were also flexible with customer goodwill policies. I thank all employees for their commitment to customer service and operational excellence.”

“Good booking momentum”

Air Canada’s diluted earnings came in at 88 cents per share, down from $5.38 in the same quarter of 2023.

The financial results, after adjusting for the strike impact, “met our expectations, with strength in the Atlantic market and in our premium cabins,” Rousseau went on to say.

Operational metrics, such as on-time performance and net promoter score, exceeded both internal targets and last year’s levels for the quarter and year-to-date, he said.

“Our underlying business fundamentals are very strong,” he said. “There is good booking momentum in the fourth quarter and early positive indicators into the first quarter of 2026.”

Amid the U.S. travel downturn, Air Canada’s trans-border business trends are also “largely stable and on par with the first half of 2025,” Rousseau said.

“We have exciting times ahead of us with growth plans fuelled by key strategic initiatives and new state-of-the-art efficient aircraft,” he said.

He said the focus over the next twelve months is on preparing the airline to grow and expand margins as it transforms its fleet with the arrival of new aircraft across the portfolio and a revitalized Rouge offering.

“We will also continue to improve our cost structure through productivity gains, operational efficiencies and constant cost discipline to mitigate near term pressures,” he said.  “We continue to focus on free cash flow generation in order to return value to shareholders, including through the renewal of our share buyback program announced today.”

The “hard work ahead in 2026,” he said, “will position us very well for the second half of our strategic plan and to deliver significant long-term value to all stakeholders.”

Last month, the airline cut around 400 management positions, or one per cent of its workforce, in a move that it called a "difficult decision."

“As a global company, Air Canada regularly reviews its resources and processes to ensure they are optimized to efficiently support business operations and its customers,” company spokesperson Christophe Hennebelle said in a statement.

The announcement coincided with Air Canada unveiling major U.S. and domestic service expansions at Billy Bishop Toronto City Airport.

Beginning in Spring 2026, Air Canada will launch new, non-stop return service four-times-daily to New York’s LaGuardia Airport, three-times-daily to Boston Logan International Airport, twice-daily to Chicago O’Hare International Airport, and daily to Washington Dulles International Airport.

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