Air Canada · TSX:AC
Air Canada — Q4 2025 Earnings Presentation
23 slides from Air Canada's earnings presentation, Feb 13, 2026
Slide 1: Fourth Quarter and Full Year 2025 Update
Air Canada Fourth Quarter and Full Year 2025 Update February 12, 2026
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 det
Slide 3: Q4 2025 Highlights of our financial results
Q4 2025 Highlights of our financial results See our full financial results at Air Canada’s Investor Relations website: aircanada.com/investors - +3.4% Year-over-year \w Capacity - ASM (Available Seat Miles) Total operating revenues @ $5.8B Year-over-year < Gam EID Passenger Cargo Other TRASM (Total
Slide 4: Full year 2025 Highlights of our financial results
Full year 2025 Highlights of our financial results See our full financial results at Air Canada’s Investor Relations website: aircanada.com/investors Total operating revenues @ $22.37B Year-over-year | sacs QR Passenger Cargo Other e +0.8% Year-over-year TRASM (Total Revenue per ASM) 21.3 cents Capa
Slide 5: Commercial Operations & Highlights
Highlights Record Financial Q4 $5.8B in YoY growth in op. FY op income of Navigated labour $3.7B in cash 2025 disruption, Performance & Strong revenue, strong income and adj. $918M, adj. geopolitical from ops. and premium demand EBITDA in Q4 EBITDA of $3.1B $747M in FCF* Finish to 2025 pressures Com
Slide 6: Protecting our balance sheet: Solid liquidity, net leverage ratio <2x
Protecting our balance sheet: Solid liquidity, net leverage ratio <2x Net Debt Leverage ratio $30 1.7X 1.7 1.6 TOTAL CASH FROM LIQUIDITY FCF OPERATIONS 1.5 $20 1.4X 1.4 $12.7 $11.6 1.3 $7.5B $3.7B $747M $10 $4.9 $5.4 at Dec. 31, 2025 in 2025 in 2025 0.1 -$273M YoY -$547M YoY $0 0.0 Dec 31, 2024 Dec
Slide 7: Fleet Dynamics: 2026 fleet entries partially offset by retirements
Fleet Dynamics: 2026 fleet entries partially offset by retirements, long-haul capacity entering in H2 2026 and 2027 -3 288 5 6 -16 10 18 -5 5 270 Net 14 additions Net 18 additions in 2026 in 2027 10 256 2 2025 787-10 A321XLR A220 737 MAX A319 A320 2026 787-10 A321XLR A220 A320 2027 7
Slide 8: Capital Commitments: changes from Q3 2025 disclosure
Capital Commitments: changes from Q3 2025 disclosure 20.0 CAD in Committed capex billions increase in 2029 and 0.8 beyond, largely due to 0.9 Airbus A350-1000 order Planned, uncommitted capex and capitalized maintenance in 2030 2.8 15.5 Q3 2025 Disclosure Committed capex Projected, Planned, uncommit
Slide 9: Guidance: 2026
Guidance: 2026* Adjusted Adjusted Capacity CASM EBITDA Free Cash Flow ~3.5% to 5.5% Between 15.05¢ Between $3.35B $400 to $800M increase versus and 15.35¢ and $3.75B 2025 *As communicated in Air Canada’s news release dated February 12, 2026. Air Canada made assumptions in providing its guidance—incl
Slide 10: Recognitions: Key industry awards
Recognitions: Key industry awards 2025 Skytrax World Airline Awards Awarded in 9 categories, most among North American airlines Including: Best Airline in North America Best Cabin Crew in North America Best Cabin Crew in Canada Best Low-Cost Airline - Rouge Only North American airline
Slide 11: Air Canada's Leadership: Experienced and dedicated to drive long-term value
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 Of
Slide 12: Fundamentals: Air Canada's robust foundations
Fundamentals: Air Canada’s robust foundations 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 13: 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 14: Thank you
Thank you aircanada.com
Slide 15: Appendix
Appendix aircanada.com
Slide 16: 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 17: 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 information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under GAAP
Slide 18: 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 effects of aircraft fuel expense, the cost of ground packages at Air Canada Vacations, freighter costs and
Slide 19: 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 (adjusted EBITDA as a percentage of operating revenues) are commonly used in the airline industry an
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 amount of cash Air Canada can generate from operations and after capital expenditures. Free cash flow is calculated as net cash
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 with a measure of its net indebtedness. Net Debt to Trailing 12-Month Adjusted EBITDA (Leverage Ratio) Net debt to trailing 12-month
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 adjusted EBITDA. This measure is defined as the ratio of net ca