Air Canada Revenue, Capacity Seen Lower in 3Q -- Earnings Preview

Dow Jones11-05

By Adriano Marchese

Air Canada is scheduled to report its third quarter earnings results Wednesday morning. Here is what you need to know.

REVENUE: Air Canada is expected to report revenue of 5.8 billion Canadian dollars ($4.13 billion), down from C$6.11 billion a year earlier, according to FactSet.

EARNINGS PER SHARE: Analysts expect per-share income of C$1.13, down from C$5.38 a share when it logged a favorable tax asset recognition in the prior-year period.

ADJUSTED EPS: On an adjusted basis, which strips out exceptional items and one-off costs, per-share income is forecasted at C$0.79.

Shares in the quarter fell 17% and recently traded at C$18.44.

What to watch

--Investors will want to know the full effects of the flight attendants' union strike in August on the quarter's performance. The roughly 10,000 attendants represented by the Canadian Union of Public Employees walked off the job mid-month forcing the country's largest airline to keep all flights grounded. Air Canada withdrew its financial targets, and then subsequently reinstated them.

--Investors will be keen to know about capacity in the fourth quarter that includes key holiday travel periods. Cameron Doerksen of National Bank of Canada notes that as a result of the flight attendant's strike, Air Canada now expects capacity in the third quarter to decline 2%, which is steeper than its previous forecast for a 0.6% decline in capacity. For the fourth quarter, the analyst thinks that hotter destinations this winter will see higher capacity as airlines shift capacity away from U.S. transborder routes.

--While the flight attendants strike has concluded, there may be new disruptions in 2026. Doerksen says that Air Canada is likely to face disruptions again next year as additional union contracts come up for renewal. "The potential for more labour issues next year may weigh on the stock's valuation," he said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

November 04, 2025 14:06 ET (19:06 GMT)

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Air Canada Revenue, Capacity Seen Lower in 3Q -- Earnings Preview

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