Air Canada Updates 2025 Guidance Amid Labour Disruption Impact

An announcement from Air Canada ( (TSE:AC) ) is now available.

Air Canada has announced its estimated results for the third quarter of 2025 and updated its full-year guidance, following a significant labour disruption in August 2025 due to a strike by the Canadian Union of Public Employees. The company anticipates a decline in operated capacity and a decrease in operating income compared to the previous year, largely due to the cancellation of over 3,200 flights. The labour disruption is estimated to have a $375 million impact on operating income and adjusted EBITDA. Despite these challenges, Air Canada is proceeding with arbitration to finalize a new agreement with CUPE and has updated its 2025 financial outlook to reflect these disruptions, projecting adjusted EBITDA between $2.9 billion and $3.1 billion.

The most recent analyst rating on (TSE:AC) stock is a Hold with a C$22.00 price target. To see the full list of analyst forecasts on Air Canada stock, see the TSE:AC Stock Forecast page.

Spark’s Take on TSE:AC Stock

According to Spark, TipRanks’ AI Analyst, TSE:AC is a Neutral.

Air Canada’s overall stock score reflects strong revenue recovery and strategic initiatives, tempered by high leverage and operational challenges. The undervaluation based on P/E ratio and positive earnings call sentiment are significant positives, while technical indicators suggest caution due to potential bearish momentum.

To see Spark’s full report on TSE:AC stock, click here.

More about Air Canada

Air Canada is a major airline operating in the aviation industry, providing passenger and cargo air transport services. It is one of the largest airlines in Canada, focusing on both domestic and international markets.

Average Trading Volume: 3,008,350

Technical Sentiment Signal: Sell

Current Market Cap: C$5.64B

See more insights into AC stock on TipRanks’ Stock Analysis page.