Air Canada has released its financial results for the first quarter of 2025, revealing a widened loss amid the ongoing challenges in the air travel industry, particularly the decline in demand for U.S. travel. Despite these setbacks, the airline’s leadership is optimistic about its ability to weather the storm and maintain a strong market position.
For Q1 2025, Air Canada reported operating revenues of $5.196 billion, slightly down by $30 million compared to the same period in 2024. Despite this decline in revenue, the airline’s diversified business segments, such as Air Canada Cargo, Air Canada Vacations, and sixth freedom revenues, provided stability and supported steady cash flow.
However, operating expenses rose by $89 million to $5.304 billion, with fuel prices helping mitigate some of the increase. This led to an operating loss of $108 million, a significant shift from the $11 million operating income reported in Q1 2024.
The airline’s adjusted EBITDA stood at $387 million, a decrease of $66 million, and its adjusted pre-tax loss widened to $215 million, up from $94 million in the same period last year. Ultimately, Air Canada’s net loss for the quarter was $102 million.
Despite the financial challenges, Michael Rousseau, Air Canada’s President and CEO, expressed confidence in the airline’s resilience. “Our Q1 2025 results demonstrate our ability to manage through turbulence,” Rousseau said, highlighting operational improvements, including enhanced on-time performance, baggage handling, and customer satisfaction.
The airline also reported strong cash flow from operations and successfully reduced its leverage ratio from Q4 2024. Advance ticket sales grew as expected, though the company remains cautious about the uncertain economic outlook. In response, Air Canada is focusing on cost control and strategic capacity adjustments to ensure it can maintain strong financial performance moving forward.
