Air Canada · TSX:AC
Air Canada — Q3 2025 Earnings Presentation
23 slides from Air Canada's earnings presentation, Nov 5, 2025
Slide 1: Air Canada Third Quarter 2025 Update
Air Canada Third Quarter 2025 Update November 4, 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 det
Slide 3: Highlights of our financial results
Q3 2025 Highlights of our financial results See our full financial results at Air Canada’s Investor Relations website: aircanada.com/investors Year-over-year oe "2.1% \w ieee (Available Seat Miles) Total operating revenues | $5.8B Year-over-year 28 GHD Passenger Cargo Other TRASM (Total Revenue per
Slide 4: Maintaining a strong and resilient balance sheet
Maintaining a strong and resilient balance sheet Net Debt Leverage ratio $6 1.6 1.6 $4.9 $4.8 1.5 TOTAL CASH FROM LIQUIDITY FCF * OPERATIONS 1.4 1.4 $4 $3.4 1.3 1.2 $2 $8.3B $813M $211M 1.1 at Sep. 30, 2025 in Q3 2025 in Q3 2025 1.0 1.0 +$76M YoY -$71M YoY $0 0.0 Sep 30, 2024 Dec 31, 2024 Sep 30, 20
Slide 5: Q3 2025 Performance & Key Developments
Q3 2025 Performance & Key Developments 12.2M customers carried in Q3, declined 4% YoY. Labour disruption $375M net impact of the disruption to Q3 2025 operating income and adjusted EBITDA. Flexible goodwill policies for customers to reimburse out-of-pocket expenses. Brand strength Quick rebound in b
Slide 6: Key Management Actions
Key Management Actions Diverse network Managed capacity to capture Atlantic and Domestic growth, reduced Transborder risk. Announced 2026 network expansion, international growth and improved downtown and offering Toronto connectivity. Cost Advanced $150M cost reduction plan, aiming for full completi
Slide 7: Updated 2025 guidance
Updated 2025 guidance* Adjusted Adjusted Capacity CASM EBITDA Free Cash Flow ~0.75% increase Between 14.60¢ Between $2.95B versus 2024 $0 to $200M and 14.70¢ and $3.05B Prior: 0.5%-1.5% Prior: -$50M to $150M Unchanged Prior: $2.9B to $3.1B increase versus 2024 *As communicated in Air Canada’s news r
Slide 8: Key industry awards
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 in the world’s
Slide 9: 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 10: 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 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 information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under GAAP
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 effects of aircraft fuel expense, the cost of ground packages at Air Canada Vacations, freighter costs and
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 (adjusted EBITDA as a percentage of operating revenues) are commonly used in the airline industry an
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 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