Air Canada’s Q3 Hits $201M Income Despite Strike Disruptions

Air Canada has reported its third-quarter 2025 financial results, highlighting a resilient performance despite labor unrest and operational challenges.

The airline brought in CA$5.77 billion (US$4.1 billion) in operating revenue, down 5 percent from the same quarter last year.

Still, Air Canada managed to earn CA$284 million (US$201 million) in operating income, maintaining a 4.9 percent margin, and generated CA$961 million (US$681 million) in adjusted EBITDA, equal to a 16.6 percent margin.

Net income was CA$264 million (US$187 million), translating to diluted earnings per share of CA$0.88 (US$0.62), down from CA$5.38 (US$3.81) a year ago.

The decline was mainly due to a three-day strike in August involving over 10,000 flight attendants, which led to more than 3,000 flight cancellations during the busy summer travel season.

The airline estimated the financial impact of the labor disruption at approximately CA$375 million (US$266 million) in lost operating income and adjusted EBITDA. Following the financial strain imposed by the strike, Air Canada initiated layoffs as part of cost-cutting measures to stabilize its operations.

The company slightly adjusted its 2025 full-year outlook, now projecting adjusted EBITDA between CA$2.95–3.05 billion (US$2.09–2.16 billion), as it focuses on restoring operational reliability, managing costs, and investing in labor relations to prevent further disruptions.

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