---
title: "Air Canada Pulls 2026 Guidance As Revenue Rises 11%"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285601913.md"
description: "Air Canada has withdrawn its 2026 financial guidance due to rising jet fuel prices linked to the Iran conflict, which poses a significant challenge for the aviation sector. CEO Michael Rousseau noted that the situation is testing demand resilience. Despite a Q1 revenue increase of 11% to C$5.8 billion, the cautious industry outlook is concerning for investors. The airline plans to offset fuel costs and will suspend flights to JFK airport starting June 1, with a resumption planned for October. Rousseau will retire following controversy over a condolence video."
datetime: "2026-05-07T19:08:31.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285601913.md)
  - [en](https://longbridge.com/en/news/285601913.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285601913.md)
---

# Air Canada Pulls 2026 Guidance As Revenue Rises 11%

Air Canada (ACDVF) has pulled its full-year 2026 financial guidance, signaling that the surge in jet fuel prices tied to the war in Iran could be becoming a major pressure point for commercial aviation. Chief Executive Officer Michael Rousseau told analysts Thursday that since late February, the situation in the Middle East and the sharp rise in global jet fuel prices have created a significant external shock for the industry. He also said the pace of the increase is testing demand resilience across commercial aviation, a warning that could matter for investors watching whether higher fuel costs begin to weigh more heavily on travel demand and airline margins.

Air Canada was able to limit part of the first-quarter financial impact through fuel hedging, according to Chief Financial Officer John Di Bert, but the broader industry tone has turned more cautious. United Airlines Holdings has cut its full-year profit forecast because of higher fuel prices, while Delta Air Lines chose not to update its full-year outlook. Air Canada is now forecasting a slight increase in second-quarter capacity and expects to offset between 50% and 60% of the incremental fuel expense through various commercial and cost actions, suggesting management is trying to protect the business while still keeping some growth in the schedule.

The company's first-quarter revenue still rose 11% to C$5.8 billion, or $4.3 billion, topping analyst estimates of C$5.5 billion, but the guidance suspension could be the bigger signal for investors. Air Canada is also halting flights to New York's JFK airport from Toronto and Montreal beginning June 1, with plans to resume them in October. Rousseau also announced he will retire from Air Canada after a political storm in Quebec over a video offering condolences for the death of two pilots, where he spoke almost entirely in English even though the company is based in the Montreal region and one of the deceased pilots was from Quebec, where French is the majority language.

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