Air Canada

a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, press star one again. Thank you. And I would now like to turn the conference over to Valérie Durand, Head of Investor Relations and Corporate Sustainability. Valérie, you may begin.

Thank you, Christa. Hello, bonjour et bienvenue à notre revue des résultats du deuxième trimestre 2025. Welcome and thank you for attending our second quarter 2025 earnings call. Joining us this morning are Michael Russo, our President and CEO. Mark Gallardo, our EVP and Chief Commercial Officer and President of Cargo. And John Deibert, our EVP and CFO. Other executives are with us as well. Ariane Meudon, our Chief Human Resources Officer and Public Affairs. Craig Laundrie, our Chief Innovation Officer and President of Aeroplan. Marc Barbeau, our Chief Legal Officer and Corporate Secretary, and Marc Mazur, our EVP and Chief Operations Officer. After our prepared remarks, we will take questions from equity analysts. I remind you that today's comments and discussion may contain forward-looking information about Air Canada's outlook, objectives, and strategies that are based on assumptions and subject to risks and uncertainties. Our actual results could differ materially from any stated expectations. Please refer to our forward-looking caution in Air Canada's second quarter 2025 news release available on aircanada.com and on CEDAR+. And now, I'd like to turn the call over to Mike.

Thank you, Valerie, and good morning. Bonjour. Thank you all for joining us. I'd like to first thank our employees for their commitment to excellence, passion, and dedication to customer service. all of which enabled us to be named the best airline in North America and the most awarded Canadian carrier at the 2025 Skytrak World Airline Awards in June. I was so proud to see their professionalism recognized at the Paris Air Show. And as a founding member of Star Alliance, we are proud that Star has yet been named again World's Best Airline Alliance at the same time. As we've discussed in the past, we are focused on improving the customer experience, leveraging technologies, process, and training. We have significantly improved the customer experience over the past couple of years, resulting in high MPS scores and strong on-time performance. And we have much more to do, all of which is expected to generate even greater loyalty, enhance revenue, and cost performance. For the second quarter, our revenues were $5.6 billion. Operating income reached $418 million, and adjusted EBITDA was $909 million, with an adjusted EBITDA margin of 16.1%. We are generally pleased with our results, especially when considering 2025 has not been business as usual to date. We have effectively navigated through challenges in various geographies and demonstrated the strength and resiliency of our business and commercial strategy. We achieved these results by exercising discipline capacity management, taking quick action to capitalize on the strength of our diverse network and capturing the demand for premium products. We carried on with the strategic expansion of our international network with new flights designed to provide easy connections for Canadians and international travelers and to take advantage of cargo opportunities. Mark will speak more about this later. Our 2Q results were supported by Air Canada Cargo, Air Canada Vacations, and Aeroplan, all vital to our diversified business. Aeroplan received three top prestigious Freddie Awards in the airline category, Best Program of the Year, Best Elite Program, and Best Promotion for Aeroplan's 40th anniversary. Aeroplan continues to grow, with third-party gross billings increasing 7% year-over-year. It also expanded its partnerships by adding Chexie, an innovative Canadian-founded fintech platform. This will allow members to earn rewards on payments for services like rent, bills, and taxes. During the quarter, we also launched fast, free Wi-Fi for all Aeroplan members in North America. We are a leader in this increasingly competitive space for business and premium travelers, with an offer that is reliable and more consistent than any other North American network carrier. Acting further on our commitment to enhancing shareholder returns, we completed our $500 million SIB in the quarter, reducing some pandemic-induced share dilution. We remain deeply committed to executing on our long-term strategic plan. Our focus remains on creating lasting value for our shareholders while fostering an inclusive, forward-thinking culture that drives our collective, sustainable success. We are confident in our business outlook and our ability to execute, and we are reaffirming our full-year guidance. Before I turn it over to Marc, I'd like to thank our employees for looking after and safely transporting more than 11 million customers in the second quarter. I'm grateful for our customers' loyalty as well, which we look to earn every day. Thank you. Merci. Over to you, Marc.