Slide 1: Air Canada Second Quarter 2025 Update
Air Canada Second Quarter 2025 Update July 28, 2025
Slide 2: Caution Regarding Forward-Looking Information
Caution Regarding Forward-Looking Information This presentation includes forward-looking statements within the meaning of applicable securities laws. Forward -looking statements relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet de
Slide 3: Highlights of our financial results
Q2 2025 Highlights of our financial results See our full financial results at Air Canada’s Investor Relations website: aircanada.com/investors Total operating revenues « $5.6B Year-over-year | = Gi GID Passenger Cargo Other e +2. 5% Yeocoveryear TRASM (Total Revenue per ASM) 21.0 cents Capacity - AS
Slide 4: Maintaining a strong and resilient balance sheet
Maintaining a strong and resilient balance sheet Net Debt Leverage ratio $6 1.4 1.4 1.4 $4.9 $4.8 1.2 TOTAL CASH FROM LIQUIDITY FCF * OPERATIONS 1.0 1.0 $4 $3.6 0.8 0.6 $2 $8.4B $895M $183M 0.4 at June 30, 2025 in Q2 2025 in Q2 2025 0.2 -$29M YoY -$268M YoY $0 0.0 Jun 30, 2024 Dec 31, 2024 Jun 30, 2
Slide 5: Q2 2025 Highlights
Q2 2025 Highlights Most awarded Named Best Airline in North America and most awarded Canadian carrier at the 2025 Skytrax World Airline Awards. Canadian carrier Expanded network with flights to Naples, Porto, Edinburgh, and Manila. Diverse network Resumed Ottawa-London and Toronto-Osaka flights. and
Slide 6: Our strong foundation
Our strong foundation Balance sheet and Air Canada Rouge and liquidity management Air Canada Vacations Fleet Air Canada Cargo Global network Technology Brand People Leading products Aeroplan and services
Slide 7: Key industry awards
Key industry awards 2025 Skytrax World Airline Awards ✓ Best Airline in North America ✓ World's Best Airline Alliance (Star Alliance) ✓ World’s Best Business Class Lounge Dining ✓ Most Family Friendly Airline in North America ✓ Best Premium Economy Class Onboard Catering in North America ✓ Best Busi
Slide 8: Air Canada's Leadership
Air Canada’s Leadership Experienced and dedicated to drive long-term value Michael Rousseau Marc Barbeau John Di Bert Mark Galardo Craig Landry President and Chief EVP, Chief Legal Officer EVP and Chief Financial EVP, Chief Commercial EVP & Chief Executive Officer and Corporate Secretary Officer Off
Slide 9: Key Management Actions in 2025
Key Management Actions in 2025 Disciplined and agile capacity management to match capacity with demand. Diverse network Expansion on LATAM schedule to capitalize on passenger demand and and offering cargo opportunities. Cost Made progress on the $150M cost reduction program, full savings expected to
Slide 10: Reaffirmed 2025 guidance
Reaffirmed 2025 guidance* Adjusted Adjusted Capacity CASM EBITDA Free Cash Flow 1% to 3% Breakeven Between 14.25¢ Between $3.2B increase versus +/- $200M and 14.50¢ and $3.6B 2024 *As communicated in Air Canada’s news release dated July 28, 2025. Air Canada made assumptions in providing its guidance
Slide 11: Strong value creation
Strong value creation* A unique value creation opportunity – 2030 aspiration >$30B revenues by 2030, Accelerated revenue growth 7-8% p.a. 18-20% adj. EBITDA margin. Margin expansion of 300bps+ returning to pre-pandemic highs. ~5% FCF margin. <12% CAPEX investment levels. Structural FCF margin of ~5%
Slide 12: Thank you
Thank you aircanada.com
Slide 13: Appendix
Appendix aircanada.com
Slide 14: Glossary
Glossary Aeroplan – Refers to Aeroplan Inc. or the Aeroplan program. Available seat miles or ASMs – Refers to a measure of passenger capacity calculated by multiplying the total number of seats available for passengers by the miles flown. CASM – Refers to operating expense per ASM. Passenger load fa
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Below is a description of certain non-GAAP financial measures and ratios used by Air Canada to provide readers with additional i nformation on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under GAA
Slide 16: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Adjusted Cost per Available Seat Mile Air Canada uses adjusted CASM to assess the operating and cost performance of its ongoing airline business without the effect s of aircraft fuel expense, the cost of ground packages at Air Canada Vacations, freighter costs an
Slide 17: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Adjusted Cost per Available Seat Mile Adjusted CASM is reconciled to GAAP operating expense as follows: (Canadian dollars in millions, except where Full Year indicated) 2024 2023 Operating expense – GAAP $ 20,992 $ 19,554 Adjusted for: Aircraft fuel (5,118) (5,31
Slide 18: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and impairment) and adjusted EBITDA margin (adju sted EBITDA as a percentage of operating revenues) are commonly used in the airline industry a
Slide 19: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA and adjusted EBITDA margin are reconciled to GAAP operating income as follows: (Canadian dollars in millions, except where indicated) Full Year 2024 2023 Operating income – GAAP $ 1,263 $ 2,279 Add back:
Slide 20: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Adjusted Net Income (loss) and Adjusted Earnings (Loss) per Share – Diluted Air Canada uses adjusted net income (loss) and adjusted earnings (loss) per share – diluted as a means to assess the overall financial performance of its business without the after-tax ef
Slide 21: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Free Cash Flow Air Canada uses free cash flow as an indicator of the financial strength and performance of its business, indicating the amou nt of cash Air Canada can generate from operations and after capital expenditures. Free cash flow is calculated as net cas
Slide 22: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Net Debt Net debt is a capital management measure and a key component of the capital managed by Air Canada and provides management wit h a measure of its net indebtedness. Net Debt to Trailing 12-Month Adjusted EBITDA (Leverage Ratio) Net debt to trailing 12-mont
Slide 23: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Net cash flows from operating activities as a percentage of adjusted EBITDA Air Canada uses net cash flows from operating activities as a percentage of adjusted EBITDA to measure cash conversion from a djusted EBITDA. This measure is defined as the ratio of net c