Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeTransportationAirlinesAir Canada posts loss, lowers guidance as fuel costs jump nearly 50%Airline's stock soars on deal to sell $2.5 billion Aeroplan stakeLast updated 1 hour ago You can save this article by registering for free here. Or sign-in if you have an account.Canada's largest airline posted a net loss of $178 million in the second quarter. Photo by Richard Lam/PostmediaAir Canada reported a net loss in the second quarter despite record operating revenues, as fuel costs soared 49 per cent, resulting in the airline lowering its 2026 guidance.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorCanada’s largest airline posted a net loss of $178 million and diluted loss per share of $0.63, Tuesday, a drop from $186 million net income and diluted earnings per share of $0.51 the year before.Chief executive Michael Rousseau said the airline’s strong pricing environment, resilient demand and continued focus on controlling costs helped absorb a significant external fuel shock.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. 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Please try again“Through our pricing actions, capacity management and fuel hedging positions, we recovered about 50 per cent of the incremental fuel expense in Q2,” Rousseau said during Wednesday’s earnings call. “A strong demand we experienced in Q2 has remained intact throughout the booking window and across the network.”The airline’s operating revenues of $6.8 billion, up 11 per cent year over year, were a record high for a second quarter and were driven by strong demand across the network, including in premium and corporate travel.Its adjusted EBITDA of $719 million was ahead of market expectations, but a 23 per cent decline from the previous year’s $909 million.Air Canada reinstated its full‑year 2026 financial guidance Tuesday, which it suspended at the end of April amid jet fuel price volatility brought on by the Iran war.The adjusted EBITDA guidance for the year was revised lower and is now between $2.9 billion and $3.2 billion, down from the previous guidance of $3.35 billion to $3.75 billion.“When compared to our expectations at the start of the year, we expect to recover a majority of the remaining fuel headwind in the second half of the year, with Q4 expected to be above 100 per cent,” said Rousseau.Air Canada shares rose 12 per cent on Tuesday after Blackstone Inc and a group of Canadian pension funds confirmed they were buying a 25 per cent stake in the airline’s Aeroplan loyalty program for $2.5 billion.Additional reporting by Bloomberg NewsMore to come … Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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