Air Canada beats Q1 revenue estimates on strong demand, suspends FY guidance

Overview

• Canada airline's Q1 revenue rose, also beats analyst expectations

• Company suspended full-year 2026 guidance due to jet fuel price volatility

• Repurchased more than C$140 mln of shares during the quarter

Outlook

• Air Canada suspended full-year 2026 guidance due to jet fuel price volatility

• Company sees Q2 2026 adjusted EBITDA of C$575 mln to C$725 mln

• Air Canada expects Q2 2026 ASM capacity to rise 0.5% to 1% from Q2 2025

Result Drivers

• STRONG DEMAND - Co said record Q1 revenue was driven by strong demand across its network

• RESILIENT BOOKINGS - Management said demand remains solid and resilient amid elevated geopolitical instability

Company press release: ID:nGNX92hSdQ

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the airlines peer group is "buy"

• Wall Street's median 12-month price target for Air Canada is C$22.00, about 22.2% above its April 29 closing price of C$18.01

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 9 three months ago

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