Air Canada (AC.TO) first-quarter adjusted net loss narrowed as operating revenue advanced, the company said after trade on Thursday as it suspended its 2026 guidance due to volatile aviation fuel prices amid the Iran war.
Air Canada reported an adjusted loss, which excludes most one-time items, of $16 million, or $0.05 per share, an improvement from the adjusted loss of $150 million, or $0.45, in the prior year period. Analysts polled by FactSet had expected a loss of $0.45 per share.
Operating revenue rose 11% to a record $5.8 billion, driven by strong demand across the network, and above analysts expectations of $5.5 billion.
Adjusted cost per available seat mile edged up year-over-year to $0.161 from $0.153, a statement added.
Air Canada suspended its fiscal 2026 guidance, citing ongoing disruption in global energy markets and volatility in jet fuel prices. It is guiding to second quarter adjusted EBITDA of $575 million to $725 million, and increasing available seat miles (ASM) capacity by 0.5% to 1.0% year over year.
"Supported by solid demand, our second quarter 2026 guidance reflects our expectation to offset between 50% and 60% of the estimated incremental fuel expense through various commercial and cost actions. We continue to see strong demand across the network and throughout the booking window for the latter half of the year," said chief executive Michael Rousseau.
Air Canada shares closed up $0.64 to $18.65 on the Toronto Stock Exchange.