Air Canada · TSX:AC
Air Canada — Q2 2026 Earnings Presentation
24 slides from Air Canada's earnings presentation, Aug 12, 2026
Slide 1: Second Quarter 2026 Update
Air Canada Second Quarter 2026 Update August 11, 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: Highlights of our financial results
Q2 2026 Highlights of our financial results See our full financial results at Air Canada’s Investor Relations website: aircanada.com/investors e +0.3% Year-over-year \w Capacity - ASM (Available Seat Miles) Total operating revenues @ $6.3B Year-over-year soo GSH Passenger Cargo Other TRASM (Total Re
Slide 4: Q2 2026 Highlights
Highlights Q2 2026 Record Q2 operating revenues of Adjusted EBITDA* of $719 million Strong cash generation, $651 Financial Performance $6.3B (11.5% margin), at the upper end of million of operating cash flow and (+11% YoY) the second quarter guidance range $174 million of free cash flow* Commercial
Slide 5: Strong liquidity and financial flexibility
Strong liquidity and financial flexibility: $8.9B liquidity and leverage ratio* maintained at 1.7x Net Debt Leverage ratio $30 1.8 1.7X 1.7X 1.6 TOTAL CASH FROM LIQUIDITY FCF 1.4 OPERATIONS $20 1.2 1.0 $12.8 0.8 $11.6 $8.9B $651M $174M $10 0.6 $5.4 $5.3 0.4 at June 30, 2026 in Q2 2026 in Q2 2026 ($2
Slide 6: Fleet Dynamics
Fleet Dynamics: 2026 fleet entries partially offset by retirements, long-haul capacity entering in 2H 2026 and 2027 -3 288 8 10 11 -12 Net 11 additions in 2026 6 -3 267 7 2 -2 Net 21 additions -4 in 2027 5 262 2 5 256 2025 737 MAX A220 A321XLR A320 A319 H1 2026 787-10 A321XLR A220 A319 A320 2026 787
Slide 7: Capital Commitments: Updated capital requirements outlook
Capital Commitments: Updated capital requirements outlook CAD in billions 0.3 Updated estimates reflect the 21.3 deferral of uncommitted capital -0.8 expenditures -0.1 20.8 Q1 2026 Disclosure* Q2 Capital Deployment Updated Uncommitted Updated Capitalized Q2 2026 disclosure** & Committed Capex Capex
Slide 8: Guidance: reinstating and updating full-year 2026 guidance
Guidance: reinstating and updating full-year 2026 guidance* Adjusted Adjusted Capacity CASM EBITDA Free Cash Flow 2.25% to 3.25% 5.0% to 6.0% increase versus Between $2.9B increase versus and $3.2B $200 to $500M 2025 2025 ($400 million to $800 million) (Previously $3.35 billion to $3.75 (Previously
Slide 9: Recognitions: Key industry awards
Recognitions: Key industry awards Freddie Awards Earned top honors in three categories in Americas region: Program of the Year Best Redemption Ability Best Promotion for its Accelerate Your Way to Status campaign APEX 2026 Awards Earned Passenger-Rated Five Star Global Airline Award for Si
Slide 10: 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 Of
Slide 11: 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 12: 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 13: Thank you
Thank you aircanada.com
Slide 14: Appendix
Appendix aircanada.com
Slide 15: 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 16: 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 17: 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 18: Non-GAAP Financial Measures: Adjusted CASM
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) 2025 2024 Operating expense – GAAP $ 21,454 $ 20,992 Adjusted for: Aircraft fuel (4,731) (5,11
Slide 19: Non-GAAP Financial Measures: Adjusted EBITDA and Margin
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: Adjusted EBITDA
Non-GAAP Financial Measures (Cont’d) Adjusted EBITDA Adjusted EBITDA is reconciled to GAAP operating income as follows: (Canadian dollars in millions, except where indicated) Twelve-months ended June 30, 2026 December 31, 2025 June 30, 2025 Operating income – GAAP $ 510 $ 918 $ 1,096 Add back: Depre
Slide 21: Non-GAAP Financial Measures: Adjusted Net Income and EPS
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 22: Non-GAAP Financial Measures: Free Cash Flow
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 23: Non-GAAP Financial Measures: Net Debt and Leverage Ratio
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 24: 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