Air Canada · TSX:AC
Air Canada — Q3 2026 Earnings Presentation
24 slides from Air Canada's earnings presentation, Oct 29, 2026
Slide 1: Air Canada Third Quarter 2026 Update
Air Canada Third Quarter 2026 Update October 29, 2026
Slide 2: Caution Regarding Forward-Looking Information
Caution Regarding Forward-Looking Information This presentation includes forward-looking statements within the meaning of applicable securities laws. Forward-looking statements relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet det
Slide 3: Highlights of our financial results
Q3 2026 Highlights of our financial results See our full financial results at Air Canada’s Investor Relations website: aircanada.com/investors . +5.7% Year-over-year \w Capacity - ASM (Available Seat Miles) Total operating revenues a $7B Year-over-year oso (Gimp Passenger Cargo Other TRASM (Total Re
Slide 4: Q3 2026 Highlights: Strong commercial performance amid fuel pressure
Q3 2026 Highlights: Strong commercial performance amid fuel pressure Revenues Costs Profitability Cash generation $7.0B $6.7B $261M $266M Operating income Operating cash flow Record Q3 operating Operating costs 3.7% operating margin revenues Up 22% YoY ($440M) Up 21% YoY on 6% ASM growth Adjusted CA
Slide 5: Strong liquidity and financial flexibility
Strong liquidity and financial flexibility | $8.0B in liquidity supports fleet renewal through a period of higher fuel costs Net Debt Leverage ratio $30 1.7X 1.7 1.6 TOTAL CASH FROM LIQUIDITY*** FCF 1.5 OPERATIONS $20 1.4 1.3X 1.3 1.2 $11.6 $10.9 1.1 $8.9B $8.0B $651M $266M ($440M) $174M $10 $5.4 at
Slide 6: Fleet: 2026 fleet entries partially offset by retirements
Fleet | 2026 fleet entries partially offset by retirements, long-haul capacity entering in 2H 2026 and 2027 -3 286 9 7 9 Net 9 additions -11 in 2026 3 -2 6 -5 6 -4 265 2 265 Net 21 additions 8 in 2027 5 256 2025 737 MAX A220 A321XLR A320 A319 Q3 2026 787-10 A321XLR A220 A319 A320 2026 787-10 A321XLR
Slide 7: Capital Commitments: Spend peaks in 2027 and moderates thereafter
Capital Commitments: Spend peaks in 2027 and moderates thereafter CAD in billions 5.0 4.5 4.5 $21.1B Total capital outlook at 4.0 0.8 September 30, 2026 3.6 3.6 3.5 Compared to $20.8B at 0.3 3.2 3.2 0.6 June 30, 2026 3.0 3.0 0.9 0.9 2.5 0.8 1.2 2.0 0.9 0.8 0.8 1.5 3.1 1.0 1.9 1.7 1.5 1.4 $12.1B 0.5
Slide 8: Guidance: Updated full-year 2026 guidance
Guidance: Updated full-year 2026 guidance* Adjusted Adjusted Free Cash Capacity CASM** EBITDA** Flow** 2.25% to 3.25% Approximately 5.5% 5.0% to to 6.0% 6.0% increase versus Between $2.4B Between $2.9B Break-even ± 2.75% increase increase increase versus versus and $2.7B $3.2B $200 to $500M 2025 202
Slide 9: Recognitions: Key industry awards
Recognitions: Key industry awards 2026 Skytrax World Airline Awards Named Best Airline North America for the second year in a row and tenth time overall Ranked #17 globally, up two places year-over-year and the only North American airline in Skytrax's Top 20 Additional Honours: Best Cabin Cr
Slide 10: Air Canada's Leadership: Experienced and dedicated to drive long-term value
Air Canada’s Leadership: Experienced and dedicated to drive long-term value Marc Barbeau John Di Bert Mark Galardo Craig Landry EVP, Chief Legal Officer EVP and Chief Financial EVP, Chief Commercial EVP & Chief Innovation Officer and Corporate Secretary Officer Officer and President, Cargo and Presi
Slide 11: Fundamentals: Air Canada's robust foundations
Fundamentals: Air Canada’s robust foundations Balance sheet and Air Canada Rouge and liquidity management Air Canada Vacations Fleet Air Canada Cargo Global network Technology Brand People Leading products Aeroplan and services
Slide 12: Strong value creation
Strong value creation* A unique value creation opportunity – 2030 aspiration >$30B revenues by 2030, Accelerated revenue growth 7-8% p.a. 18-20% adj. EBITDA margin**. Margin expansion of 300bps+ returning to pre-pandemic highs. ~5% FCF margin**. <12% CAPEX investment levels. Structural FCF margin of
Slide 13: Thank you
Thank you aircanada.com
Slide 14: Appendix
Appendix aircanada.com
Slide 15: Glossary
Glossary Aeroplan – Refers to Aeroplan Inc. or the Aeroplan program. Available seat miles or ASMs – Refers to a measure of passenger capacity calculated by multiplying the total number of seats available for passengers by the miles flown. CASM – Refers to operating expense per ASM. Passenger load fa
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures Below is a description of certain non-GAAP financial measures and ratios used by Air Canada to provide readers with additional information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under GAAP
Slide 17: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Adjusted Cost per Available Seat Mile Air Canada uses adjusted CASM to assess the operating and cost performance of its ongoing airline business without the effects of aircraft fuel expense, the cost of ground packages at Air Canada Vacations, freighter costs and
Slide 18: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Adjusted Cost per Available Seat Mile Adjusted CASM is reconciled to GAAP operating expense as follows: (Canadian dollars in millions, except where Full Year indicated) 2025 2024 Operating expense – GAAP $ 21,454 $ 20,992 Adjusted for: Aircraft fuel (4,731) (5,11
Slide 19: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and impairment) and adjusted EBITDA margin (adjusted EBITDA as a percentage of operating revenues) are commonly used in the airline industry an
Slide 20: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Adjusted EBITDA Adjusted EBITDA is reconciled to GAAP operating income as follows: (Canadian dollars in millions, except where indicated) Twelve-months ended September 30, 2026 December 31, 2025 September 30, 2025 Operating income – GAAP $ 487 $ 918 $ 340 Add bac
Slide 21: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Adjusted Net Income (Loss) and Adjusted Earnings (Loss) per Share – Diluted – Attributable to Shareholders of Air Canada Air Canada uses adjusted net income (loss) and adjusted earnings (loss) per share – diluted as a means to assess the overall financial perform
Slide 22: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Free Cash Flow Air Canada uses free cash flow as an indicator of the financial strength and performance of its business, indicating the amount of cash Air Canada can generate from operations and after capital expenditures. Free cash flow is calculated as net cash
Slide 23: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Net Debt Net debt is a capital management measure and a key component of the capital managed by Air Canada and provides management with a measure of its net indebtedness. Net Debt to Trailing 12-Month Adjusted EBITDA (Leverage Ratio) Net debt to trailing 12-month
Slide 24: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Net cash flows from operating activities as a percentage of adjusted EBITDA Air Canada uses net cash flows from operating activities as a percentage of adjusted EBITDA to measure cash conversion from adjusted EBITDA. This measure is defined as the ratio of net ca