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Air Canada suspends 2026 full-year guidance amid uncertain jet fuel costs
The carrier said it expects to offset 50% to 60% of added fuel costs through fare increases and other commercial actions.
- On Thursday, Air Canada suspended its 2026 full-year profit forecast, citing uncertainty over jet fuel costs caused by the war in Iran.
- War-Related supply constraints have nearly doubled fuel prices since late February, as tanker traffic through the Strait of Hormuz remains stalled, trapping airlines between soaring expenses and fixed-fare tickets.
- To manage costs, the airline has implemented fare increases, raised checked baggage fees to $45, and cut less profitable routes, while pausing share buybacks to protect cash flow.
- Projecting adjusted EBITDA between $575 million and $725 million for the second quarter, CEO Michael Rousseau expects to offset 50% to 60% of incremental fuel expenses through commercial and cost actions.
- Despite fuel-driven fare increases, Rousseau stated the airline sees "strong demand" across its network, though rising costs are "testing demand resilience across commercial aviation.
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Air Canada has suspended its outlook for this year. The airline is doing this due to rising jet fuel prices resulting from the war in Iran.
The Toronto Star+7 Reposted by 7 other sources
Air Canada suspends 2026 full-year guidance amid uncertain jet fuel costs
Air Canada has suspended its guidance for the year as jet fuel prices remain volatile due to war in the Middle East and the outlook for those costs in the
·Toronto, Canada
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The company is no longer able to reliably predict its results for the coming months, so the costs of kerosene are unstable.
·Montreal, Canada
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Air Canada is suspending its forecast for the entire year 2026, with the price of kerosene remaining volatile due to the Middle East war and the outlook for these costs for the second half remaining uncertain.
·Montreal, Canada
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Total News Sources17
Leaning Left6Leaning Right2Center6Last UpdatedBias Distribution43% Left, 43% Center
Bias Distribution
- 43% of the sources lean Left, 43% of the sources are Center
43% Center
L 43%
C 43%
14%
Factuality
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