Air Canada posted a net loss for the year’s second quarter as jet fuel costs soared due to the Iran war.
The Montreal-based carrier said that its fuel costs rose 49% year-over-year in the second quarter, resulting in a net loss of -$178 million and a diluted loss per share of -$0.63.
That compares to net income of $186 million or diluted earnings per share of $0.51 a year ago.
Revenue in the period totaled $6.27 billion, which topped the $6.17 billion that had been forecast on Wall Street.
Management reinstated Air Canada’s full‑year 2026 financial guidance after suspending it at the end of April amid jet fuel price volatility brought on by the Iran war.
The carrier lowered its guidance for the year, saying it expects earnings of $2.9 billion to $3.2 billion, down from a previous outlook of $3.35 billion to $3.75 billion in profits.
On Aug. 12, Air Canada announced that it had sold a 25% stake in its Aeroplan loyalty rewards program to U.S. private equity firm Blackstone (BX) and three Canadian pensions.
The sale of the Aeroplan stake generated $2.5 billion for Air Canada. The carrier plans to use proceeds from the deal to repay $1.7 billion in bonds and buyback $800 million of its own stock.
AC stock has risen 56% in the last 12 months to trade at $30.61 per share, its highest level since the Covid-19 pandemic struck in 2020.
