Air Canada posts Q2 loss, lowers guidance on fuel cost surge

Air Canada reported a net loss of C178 million for the second quarter of 2026, a sharp reversal from the C186 million profit it posted a year earlier, as a 49 percent surge in fuel costs overwhelmed record operating revenues. The airline also announced a C2.5 billion deal to sell a 25 percent stake in its Aeroplan loyalty program and reinstated its full-year financial guidance with a lower outlook.

The Montreal-based carrier said its second-quarter operating revenue reached a record C6.3 billion, an 11 percent increase from the same period in 2025. The revenue growth was driven by strong demand across its network, particularly in premium, corporate, and Sixth Freedom international connecting traffic. However, the company’s fuel expense jumped to C1.7 billion, up from nearly C1.15 billion a year ago, due to global oil price volatility linked to the ongoing conflict in the Strait of Hormuz region.

Chief Executive Officer Michael Rousseau said the airline’s pricing actions, capacity management, and fuel hedging positions helped it recover about 50 percent of the incremental fuel expense during the quarter. He noted that demand remained strong and that the company’s diversified...