Air Canada Cuts Capacity and Profit Forecast
Air Canada reduced its first quarter capacity and lowered its annual profit forecast as soaring jet fuel costs pressure margins. The airline expects fuel prices to remain elevated due to ongoing market volatility. Despite higher operating revenue, net income fell.
Xurve View
Insights:
Xurve View
Air Canada is cutting more than 2% of planned capacity for the first quarter of 2027 to protect margins against rising jet fuel costs. The Canadian flag carrier reduced its annual core profit outlook after fuel price estimates jumped to C$1.72 ($1.23) per liter. The cuts reflect broader margin pressures across the industry following the conflict in Iran.
