Air Canada

Good evening, ladies and gentlemen, and thank you for standing by. Welcome to Air Canada's third quarter 2026 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. I would now like to turn the call over to Amanda Murray, Vice President of Financial Planning, Strategy, and Investor Relations. Amanda, please go ahead. Thank you, Krista.

Hello, bonjour, et bienvenue à notre revue des résultats du troisième trimestre 20-26. Welcome to Air Canada's third quarter 2026 earnings call. Thank you for joining us today. With me today are John Di Bert, our Chief Financial Officer, and Marc Galardo, our Chief Commercial Officer and President of Cargo. Other members of our executive team are also here for the Q&A. Rob Phipe, who represents the Board of Directors, is with us as well. Before we begin, a reminder that today's discussion may contain forward-looking information about Air Canada's outlook, objectives, and strategy. Actual results could differ materially due to various assumptions, risks, and uncertainties. Please refer to our Q3 2026 earnings release, our 2025 annual MD&A, our third quarter 2026 MD&A, and other filings available on aircanada.com and on CDARclass. With that, I'll turn the call over to John.

Thank you, Amanda, and good evening, everyone. Bonjour à tous. I'll start with the headline. This quarter showed the resilience of Air Canada. Strong commercial execution delivered solid results despite higher fuel costs. Operating revenues grew 21% to $7 billion, with passenger revenues growing at the same rate. Even taking into account last year's labor disruption in Q3, this quarter showed the strength of our commercial strategy. Almost 6% more capacity, an 89% load factor of nearly 3 percentage points, and yields up 11% year-over-year. So, more seats, fuller planes, and higher fares. That translated into adjusted EBIT of $936 million, essentially in line with last year while absorbing a $906 million of higher fuel costs driven by 68% higher fuel prices year over year. Adjusted EBITDA margin of 13.4% declined from 16.6% last year. I want to thank our employees who delivered a safe, consistent, and caring service to our customers over a very busy summer period. Their focus and professionalism are what turn our plans into results, quarter after quarter. Our recent recognition as the best airline in North America at the 2026 SkyTrack World Airline Awards, the 10th time we've received this honor since 2010, reinforces the strength of our offering and our commitment to our customers. Allow me to step back from the quarter for a moment. Over the last couple of years, we have made meaningful progress in strengthening Air Canada. We've reduced leverage, further strengthened our balance sheet and substantially lowered our share count. We have also built on our solid commercial foundations and reached new agreements with all employee groups. The scale of our hubs, the breadth of our global network, premium products and the strength of our plan give us differentiated customer proposition and support more diversified revenue streams. Together, these achievements give us resilience and financial flexibility to keep investing in our fleet, network, our customer experience, and our people, while creating lasting value for our customers, employees, and our shareholders. We are building a stronger, more resilient airline focused on structural and sustainable value creation. Marc will begin with our commercial performance, and I'll follow with our financial results and outlook before we open the lines for questions. Marc, over to you.