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Air Canada narrows 2025 core profit forecast amid US travel decline
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Air Canada narrows 2025 core profit forecast amid US travel decline
Nov 4, 2025 3:29 PM

Nov 4 (Reuters) - Air Canada ( ACDVF ) narrowed its 2025

core profit forecast after reporting lower third-quarter profit

on Tuesday, as the airline grapples with waning demand for

travel to the U.S. amid trade tensions.

Canada's largest carrier expects full-year adjusted earnings

before interest, taxes, depreciation and amortization to be

between C$2.95 billion ($2.10 billion) and C$3.05 billion,

compared with its prior forecast of C$2.9 billion to C$3.1

billion.

Cross-border travel between Canada and the U.S. has slowed

significantly this year after President Donald Trump's steep

tariffs on Canadian imports sparked a widespread backlash,

including cancellations of planned visits south of the border.

In the third quarter, the Canadian carrier also struggled

with a major shutdown after nearly 10,000 flight attendants

walked off the job in a high-profile strike demanding better

wages and compensation for unpaid "ground work".

The four-day walkout, which defied a government back-to-work

order, led to the cancellation of thousands of flights and

grounded most of Air Canada's ( ACDVF ) fleet, severely disrupting

operations and denting revenue.

Last month, the airline trimmed its financial expectations

for the quarter and the full year to account for a hit from the

strike.

Air Canada ( ACDVF ) said it recorded a one-time pension past service

cost and other labor-related charges of C$173 million in the

quarter, including ones related to the tentative agreement

reached with Canadian Union of Public Employees.

The company reported an adjusted profit of C$223 million, or

75 Canadian cents per share, for the quarter, compared with

C$969 million, or C$2.57 per share, a year earlier.

Total operating revenue was C$5.77 billion, compared with

C$6.11 billion in the year-ago period.

($1 = 1.4024 Canadian dollars)

(Reporting by Shivansh Tiwary and Anshuman Tripathy in

Bengaluru; Editing by Sriraj Kalluvila)

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