Air Canada reported a larger-than-expected first-quarter loss on Thursday, primarily due to a decline in passenger traffic to the United States, which has been impacted by strained trade relations between the two countries.
The airline posted an adjusted loss of C$0.45 per share for the first quarter, compared to a loss of C$0.27 per share in the same period last year. Additionally, Air Canada revised its adjusted EBITDA forecast for the year, lowering it to a range of C$3.2 billion to C$3.6 billion, down from the previous estimate of C$3.4 billion to C$3.8 billion.
The company is now targeting operating revenues of around C$30 billion by 2028.
Like other North American carriers, Air Canada has been adjusting its flight schedules in response to weaker U.S. domestic bookings. The airline has also scrapped financial forecasts and implemented stricter cost controls, including measures to manage rising labor expenses, in order to protect its margins.
Tariffs introduced by U.S. President Donald Trump have dampened consumer sentiment and raised the cost of aircraft parts and planes. Aircraft manufacturers are attempting to pass on these price increases to airlines.
Air Canada has previously noted that its drop in U.S.-bound bookings over the next six months reflects a broader industry trend, with bookings down by roughly 10% overall.
