Air Canada lowers 2024 adjusted EBITDA forecast to $2.9 billion-$3.2 billion as jet fuel costs jump 49%
AI Market Summary
Air Canada cut 2024 adjusted EBITDA guidance as jet fuel costs rose ~49% amid geopolitical-driven energy volatility, highlighting margin pressure across fuel-sensitive transport. The sale of 25% of Aeroplan for $2.5B to repay a $1.2B bond maturity improves near-term liquidity and credit optics, partially offsetting earnings headwinds. The news reinforces the market's focus on oil-linked input costs and balance-sheet resilience.
Impact level
● Medium
Affected assets
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AI Insight · NCCO1OILBRENT2USD/USDTAI Insight
● Neutral
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Air Canada cut its 2024 adjusted EBITDA outlook to $2.9 billion to $3.2 billion from its prior $3.35 billion to $3.75 billion range, citing a sharp rise in jet fuel costs. Outgoing CEO Michael Rousseau said second-quarter jet fuel expenses were 49 per cent higher than a year earlier. The carrier also said investors including funds managed by Blackstone Inc. will pay $2.5 billion for a 25% stake in its Aeroplan loyalty business, with proceeds to repay an upcoming $1.2 billion bond maturity.
