Air Canada is upgraded from sell to buy, with a new price target of US$18.31. Q3 earnings were significantly impacted by a labor strike, higher costs, and weak US Transborder business, but ACDVF's underlying performance remains resilient. Updated guidance shows stable EBITDA and improved free cash flow expectations, reflecting solid management despite ongoing labor and CapEx pressures.
Air Canada (TSX:AC.B) reported third quarter financial results below analyst expectations as the airline faced the impact of a labor disruption and softer international travel demand. The company reported operating revenues of C$5.774 billion for the quarter ended September 30, 2025, a 5% decline from a year earlier and below the Wall Street consensus estimate of about C$5.83 billion.
The airline is riding a rebound in premium and international travel to move past the fallout from its recent labor disruption that impacted third-quarter results.
Air Canada (ACDVF) came out with quarterly earnings of $0.55 per share, missing the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $1.88 per share a year ago.
The airline's revenue fell 5% to 5.77 billion Canadian dollars in the latest quarter.
Flight attendants at Air Canada and its regional unit have voted against ratifying the carrier's wage offer, the union said on Friday.
Canada's government stepped in four times to aid seven companies last year, stopping strikes using an obscure Labour Code provision. A similar decree on Sunday failed, however, as Air Canada's flight attendants refused to obey and stayed on strike for three days.
Air Canada (TSX:AC.B) has reached a provisional agreement with its flight attendants' union, ending a four-day strike that disrupted services and stranded more than half a million passengers. The Canadian Union of Public Employees said the deal represented “transformational change” for the industry, while the airline confirmed operations began resuming on Tuesday.
Air Canada said Tuesday it will gradually restart operations after reaching an agreement with the union for 10,000 flight attendants to end a strike that disrupted the travel plans of hundreds of thousands of travelers.The union first announced the agreement early Tuesday after Air Canada and the union resumed talks late Monday for the first time since the strike began over the weekend. The strike is affecting about 130,000 travelers a day at the peak of the summer travel season.Canada's largest airline said flights will start resuming Tuesday evening.
Air Canada (TSX:AC.B) will gradually resume flights starting on Tuesday evening after the airline and the Canadian Union of Public Employees (CUPE) have reached a tentative agreement, ending a strike by the airline's flight attendants. More than 10,000 flight attendants walked off the job early Saturday, grounding flights and disrupting travel for an estimated 500,000 passengers over nearly four days.
The airline said the first resumed flights are scheduled to depart on Tuesday evening, but the “return to full, regular service may require seven-to-ten days as aircraft and crew are out of position.” Due to this, some flights may be cancelled over the week, “until the schedule is stabilized.
The strike caused flight cancellations affecting 500,000 customers.