By Kelly Cloonan

Air Canada reinstated its outlook for the full year at a lower level, citing a labor strike that led to flight cancellations.

The airline said Wednesday it now expects adjusted earnings before interest, taxes, depreciation and amortization of 2.9 billion Canadian dollars to C$3.1 billion for the year and capacity up 0.5% to 1.5%.

The company's previous full-year outlook, which it suspended last month, had forecast adjusted Ebitda between C$3.2 billion and C$3.6 billion and capacity growth of 1% to 3%.

The updated guidance reflects the financial and operational effects of a strike by the Canadian Union of Public Employees (CUPE), which represents cabin crew.

The strike led Air Canada to cancel over 3,200 flights last month, the carrier said.

It expects a C$430 million headwind to revenue due to refunds issued to customers, customer compensation and lower than expected travel bookings in August and early September. Overall, it expects a C$375 million hit to adjusted Ebitda, with the revenue headwind partially offset by lower fuel expenses from fewer flights.

Air Canada and CUPE are proceeding to arbitration to finalize the wage portion of their four-year tentative agreement. No labour disruption can be initiated by either party during the arbitration process or the term of the new agreement, the company said.

The company also provided an outlook for the third quarter ending Sept. 30, guiding for adjusted Ebita between C$950 million and C$1 billion and capacity down about 2% from a year ago.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

September 24, 2025 18:07 ET (22:07 GMT)

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