Air Canada scraps 2026 forecast as Iran war pushes up fuel cost, clouds demand outlook
Air Canada has withdrawn its full-year 2026 profit forecast due to rising jet fuel costs and uncertain demand caused by the war in Iran. The airline is implementing cost-saving measures such as capacity reductions, fare hikes, and service fee increases to offset higher fuel expenses. For the second quarter of 2026, Air Canada expects adjusted EBITDA between $575 million and $725 million, while reporting a first-quarter net profit of $48 million.
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Open this photo in gallery:Air Canada planes at Pearson International Airport in April, 2021.Nathan Denette/The Canadian PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountAir Canada AC-T pulled its full-year core profit forecast on Thursday as the war in Iran pushed up jet fuel prices and clouded the outlook for demand.Fuel, which typically accounts for about a quarter of operating costs, has almost doubled in price since the conflict started, trapping carriers between soaring expenses and tickets sold months in advance at fixed fares.The surge has forced carriers into mitigation mode, prompting capacity cuts, fare increases and higher fees for services such as checked baggage.Air Canada has also cut some future flights to New York to reduce fuel…
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