Air Canada · TSX:AC
Air Canada — Q1 2026 Earnings Presentation
23 slides from Air Canada's earnings presentation, Apr 30, 2026
Slide 1: Air Canada First Quarter 2026 Update
Air Canada First Quarter 2026 Update April 30, 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 de
Slide 3: Highlights of our financial results
1 2026 See our full financial results at Air Canada’s Investor Relations < A 7 . website: aircanada.com/investors Highlights of our financial results Total operating revenues S117M Year-over-year Operating income , $623M $5.8B Adjusted EBITDA* Year-over-year Year-over-year 1 6 ¢ 56¢ Diluted earnings
Slide 4: Operations Commercial Highlights
Highlights Strong balance sheet Q1 2026 Operating income of Record Q1 $1.8B in cash Strong Financial Record Q1 total revenues $117M and record Q1 from ops. and $1.6B in 1.4x leverage ratio Performance of $5.8B (+11% YoY) $12.3B in total long-term adj. EBITDA of $623M FCF1 debt & lease liabilities Co
Slide 5: Protecting our balance sheet: Solid liquidity, leverage ratio <2x
Protecting our balance sheet: Solid liquidity, 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 $11.6 $12.3 1.3 $8.8B $1.8B $1.6B $10 $5.4 $4.9 at Mar 31, 2026 in Q1 2026 in Q1 2026 0.1 +$272M YoY +$773M YoY $0 0.0 Dec 31, 2025 Mar
Slide 6: Fleet Dynamics: 2026 fleet entries partially offset by retirements
Fleet Dynamics: 2026 fleet entries partially offset by retirements, long-haul capacity entering in 2H 2026 and 2027 -3 287 6 Net 14 additions in 2026 -14 17 9 -5 5 270 10 Net 18 additions in 2027 -2 260 2 1 5 256 2025 737 MAX A220 A319 1Q 2026 787-10 A321XLR A220 A319 A320 2026 787-10 A321XLR A220 A
Slide 7: Capital Commitments: Change from prior disclosure
Capital Commitments: Change from prior disclosure 21.3 CAD in Unfav. FX & billions updated 0.3 commitments 0.1 Updated estimates for planned, 0.4 uncommitted capex and capitalized maintenance through 2030 0.5 20.0 2025 Disclosure Q1 Actuals* Committed capex Projected, Planned, Q1 2026 disclosure* un
Slide 8: Guidance: Suspended full-year 2026 guidance and introduced second quarter 2026 financial guidance
Guidance: Suspended full-year 2026 guidance and introduced second quarter 2026 financial guidance providing near-term visibility* Adjusted Capacity EBITDA 0.5% to 1.0% increase versus Between $575M 2025 and $735M *Air Canada made assumptions in providing its guidance—including current demand trends
Slide 9: 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 10: 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 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 i nformation on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under GAA
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 effect s of aircraft fuel expense, the cost of ground packages at Air Canada Vacations, freighter costs an
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 Adjusted EBITDA is reconciled to GAAP operating income as follows: (Canadian dollars in millions, except where indicated) Twelve-months ended March 31, 2026 December 31, 2025 March 31, 2025 Operating income – GAAP $ 1,143 $ 918 $ 1,144 Add back: D
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