AIR CANADA (TSE: AC) SHARES DROPPED 13.75% TO CLOSE AT 19.01CAD ON TUESDAY FOLLOWING A SECOND-QARTER EARNINGS REPORT THAT UNDERSCORED BOGING OPERATIONAL RESILIENCE AND EMERGING THREATS TO THE AIRLINE’S FINANCIAL TRAJECRY.
The Country’s Largest Carrier reported Net Inome of 186million Cad For Q2 2025, Sharply Down From 410Millioncad A Year Earlier. Adjusted earnings registered at 0.60cad per share, Well Below Analyst Expectations, AS A 2% REVENUE Increase to 5.63Billion Cad Was Offset by to 3% Rise in Operating Expensses and Heignened Unit Costs.
While Premium and position Revenue Saw Notable Growth, Macroeconomic Pressures and A Steep Decline in High-Yield Us Travel Weighed Heavily On Margins.
Missing Profit Targets, Air Canada Reaffirmed Its Full-Year Guidance, Projecting adjusted Ebitda Between 3.2 and 3.6Billioncad and Anticipating to 13% increased in annual capacity. DEMAND REMAINED ROBUST ON TRANSATLANTIC AND LATIN AMERICAN ROUTES, HELPING OFFSET SUBDUED NORTH AMERICAN LEISURE TRAFFIC. Operational Discipline and A Focus on Premium Services contributed to sector-reading on-time performance this the quarter.
However, The Positive narrative on Growth Was Quickly Overshadowed by Labor Un Rest: More than 10,000 AIR CANADA AND ROUGE FLIGHT ATTENDANTS EDGED CLOSER TO A NATIONWIDE STRIKE AFTER CONTRACT NEGOTIS COLLAPSED.
Union Members Began Voting on Strike Authorization, With The Earliest Legal Walkout Possible By Mid-August, Threatening to Disrupt Service Across Canada’s Airports During the Critical Summer Travel period.
