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That amounted to diluted earnings per share of 16 cents, compared with a diluted loss per share of 40 cents during the prior-year quarter. 

The airline says it delivered a record first-quarter operating revenue of $5.8 billion, up 11 per cent year-over-year from $5.2 billion. 

Chief executive Michael Rousseau emphasized the airline's financial discipline in a news release accompanying the results.

“We are committed to maintaining a strong financial footing while delivering long-term shareholder value. During the quarter, we generated $1.8 billion in cash from operating activities, $1.6 billion in free cash flow and repurchased more than $140 million of our shares," he said. 

"This performance reflects our prudent approach to capital allocation and balance sheet management, allowing us to invest in the business, manage debt and return capital to shareholders while preserving financial flexibility."

About 20 per cent of the world's crude supply typically passes through the Strait of Hormuz, a narrow waterway connecting the Persian Gulf with the open sea. 

But tanker traffic there has all but halted since late February, when the U.S. and Israel began their strikes on Iran. There's been virtually no change in that situation despite the ceasefire announced three weeks ago. 

The supply constraints have driven up crude oil prices, as well as derivatives such as jet fuel.

Air Canada offered an outlook for the second quarter in light of the suspended full-year guidance.

The airline's second-quarter guidance reflects an expectation to offset between 50 and 60 per cent of the estimated incremental fuel expense through commercial and cost actions, Rousseau said. 

Air Canada now expects adjusted earnings before deductions for the second quarter to come in between $575 million and $725 million. 

Rousseau said in the news release that despite higher fuel prices, the airline still sees "strong demand" in booking in the second half of the year.

This report by ºÃÉ«tvwas first published April 30, 2026.     

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