Air Canada forecasts a favorable outlook for its 2026 core profit, driven by increasing international travel demand. The airline anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the range of $3.35 billion to $3.75 billion. This estimate slightly exceeds Wall Street’s average expectation of $3.5 billion.
Factors Contributing to Profit Growth
The airline attributes this optimistic projection to strong demand on international routes, particularly beyond the U.S. market. The surge in premium travel has also significantly contributed to this positive outlook.
Performance of International Routes
- International travel demand has remained robust, mitigating the impact of declining domestic demand.
- Long-haul bookings are particularly strong, alongside healthy premium cabin demand.
- This growth in international routes has allowed Air Canada to offset some challenges in U.S.–Canada routes.
Capacity Expansion Plans
To support this growth, Air Canada plans to increase its available seat miles capacity by 3.5 to 5.5 percent in 2026. This metric is critical as it reflects the airline’s ability to carry more passengers, which is essential for maintaining profitability.
In summary, as global demand for travel rises, Air Canada is positioning itself to capitalize on this trend. Its focus on international markets and expansion in premium travel segments sets a solid foundation for achieving its ambitious profit forecasts in the coming years.
