Air Canada Reports First Quarter 2025 Net Loss of $102 Million or $0.40 per Diluted Share
- Joe Breitfeller
- May 9
- 3 min read
Air Canada has reported a first quarter 2025 net loss of $102 million or ($0.40) per diluted share, on a 1.0 percent year-over-year decline in revenue to $5.2 billion. At March 31, 2025, Air Canada had cash, cash equivalents and short and investments totaling $8.06 billion.
On Thursday (May 8, 2025), Air Canada reported their financial results for the period ending March 31, 2025. The carrier reported a first quarter net loss of $102 million or ($0.40) per diluted share on a year-over-year decline in revenue of 1.0 percent to $5.2 billion. Air Canada’s first quarter total revenue per available seat mile (TRASM) declined 0.2 percent versus Q1 2024 to 21.4 cents, while cost peer available seat mile (CASM) increased 2.1 percent to 21.9 cents. Costs excluding fuel and other special items (CASM-ex+) or adjusted CASM increased 3.5 percent to 15.3 cents. At the end of the first quarter, Air Canada had cash, cash equivalents, and short and long-term investments totaling $8.06 billion.
In Thursday’s announcement, Air Canada’s President and CEO, Michael Rousseau, said,
“Our first quarter 2025 results show Air Canada is effectively managing through a turbulent period. Total operating revenues of nearly $5.2 billion were stable year-over-year on similar capacity. Our revenue diversification strategy remains sound; sixth freedom revenues grew, and Air Canada Cargo and Air Canada Vacations delivered solid results in the period. We recorded adjusted EBITDA of $387 million. Winter is always a challenging test, yet in the quarter we made progress in on-time performance, baggage delivery and customer satisfaction. Most importantly, we carried our nearly 10.8 million passengers safely and I thank all employees for their hard work taking care of our customers.
“In the quarter, we reported strong cash from operations and free cash flow. Our leverage ratio decreased from the fourth quarter of 2024. Although advance ticket sales grew in line with our expectations in the period, we anticipate market conditions will remain unsteady with an uncertain economic outlook. In response, we are prudently moderating our expectations and concentrating on controllable factors such as cost management and strategic capacity adjustments to ensure strong performance in key financial metrics.
“Our results demonstrate that we have a solid and diversified commercial foundation, a disciplined capital allocation strategy, and a skilled and dedicated team. We are encouraged that despite some shifts in certain markets, overall demand trends remain steady. In the quarter, we purchased and cancelled over 15 million shares to complete the normal course issuer bid program announced last November. In our ongoing drive to create value, we are pleased to announce today our intention to launch a substantial issuer bid to purchase and cancel up to $500 million worth of shares. The SIB underscores our commitment, as we advance toward our 2028 financial targets, to creating significant value for shareholders and succeeding on a sustained, long-term basis for the benefit of all stakeholders.”
Air Canada is Canada’s largest domestic and international airline. The Canadian flag carrier is a founding member of the Star Alliance and holds a Four-Star ranking from Skytrax. Air Canada provides scheduled passenger service to 180 airports in Canada, the United States, and internationally on six continents. Through the carrier’s Aeroplan loyalty program, customers can earn and redeem points on the world’s largest airline partner network of 45 airlines. Air Canada Cargo offers air freight lift and connectivity to hundreds of destinations across six continents with a dedicated fleet of 767-300 Freighters and passenger aircraft belly hold capacity. Additionally, the airline has committed to a net zero emissions goal from all global operations by 2050.
Source: Air Canada/CNW
