Air Canada

Ladies and gentlemen, thank you for standing by. My name is Krista and I will be your conference operator today. At this time, I would like to welcome you to the Air Canada's third quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at that time, simply press star followed by the number one on your telephone keypad. And if you'd like to withdraw your question, again, press star 1. Thank you. I would now like to turn the conference over to Valerie Durand, Investor Relations. Valerie, please go ahead.

Thank you, Krista. Hello, bonjour, et bienvenue à notre revue des résultats du troisième trimestre 2025. Welcome, and thank you for attending our third quarter 2025 earnings call. Joining us this morning are Michael Russo, our President and CEO, Mark Gallardo, our Executive Vice President and Chief Commercial Officer and President of Cargo. And John Deibert, our Executive Vice President and CFO. Other Executive Vice Presidents are with us as well. Ariel Melo-Wechsler, our Chief Human Resources Officer and Public Affairs. Craig Laundrie, our Chief Innovation Officer and President of Aeroplan. Matt Barbeau, our Chief Legal Officer and Corporate Secretary, as well as Mark Nazer, our 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 third quarter 2025 news release available on aircanada.com and on CDAR+. And now I'd like to turn the call over to Mike.

Well, thank you, Valerie. Hello, bonjour. Thank you for joining us today for our third quarter results call. We delivered a solid third quarter financial and operating performance after adjusting for the impact of the labor disruption, which of course occurred at the peak of the summer season. During the bargaining period with CUPE, we developed comprehensive plans to ensure the safe orderly wind down and restart of the operations in the event of a labor disruption. These were acted on, and the entire company worked extremely hard to assist those whose travel was disrupted and to quickly return our operations to normal. I thank all our employees for their tireless efforts and unwavering commitment to supporting our customers during this challenging time. We also voluntarily introduced our special goodwill policy, We have received more than 150,000 claims to date, which we have been addressing diligently. Processing these claims is complex and requires a coordinated effort. We do expect to finish in the coming weeks. We reported third quarter operating revenues of $5.8 billion, down 5% from a year ago, on a 2% capacity decline. Both declines were the result of the strike-related flight cancellations. Adjusted EBITDA of $961 million declined $562 million from the same quarter in 2024. Excluding the labor disruption, third quarter adjusted EBITDA would have aligned with our full-year guidance shared last July and come close to pre-strike market expectations. Operational metrics such as our on-time performance and net promoter score exceeded both internal targets and last year's levels for the quarter and year-to-date. I am very pleased with the progress we're making. Booking trends for Q4 are very strong. We expect year-over-year growth and adjusted EBITDA in the last quarter of the year. This morning, we updated our full year guide, which John will further detail for you. But first, let me turn it over to Mike.