MONTREAL — Jet fuel cost impact, the latest unbundled fares, new routes, fleet expansion, leadership transitions and, of course, the Aeroplan announcement  – there was a lot to talk about during this morning’s Air Canada’s Q2 2026 conference call, and members of Air Canada’s executive team were asked about all of it.

The airline’s Q2 results, reported yesterday, included an increase in operating revenues, up 11% year over year, supported by strong demand across the airline’s network, including continued strength in premium and corporate travel. Revenue hit $6.3 billion, up from $5.6 billion in Q2 2025. The airline reported a net Q2 loss of $178 million.

“Air Canada delivered a strong second quarter … despite fuel costs being higher than we anticipated,” said Air Canada’s President and CEO, Michael Rousseau, on this morning’s call.

A strong pricing environment and resilient demand were among the strengths that helped Air Canada absorb the significant external shock of soaring oil prices and jet fuel costs, he added.

Rousseau also promised an announcement about “exciting new routes for next summer” in the very near future. Network expansion is fuelled in part by Air Canada’s newest aircraft, the A321XLR.

The airline took delivery of its first A321XLR in early June, with another 29 on the way. Delivery delays for the Airbus aircraft are impacting not just Air Canada but many other airlines including American Airlines and United Airlines.

“THERE IS NO INTENTION OF RELINQUISHING CONTROL”

Aeroplan was a hot topic. As reported yesterday, Blackstone and La Caisse, together with other leading Canadian institutions, are making a $2.5 billion minority equity investment in Aeroplan.  In exchange the investor group acquires a 25% non-controlling equity interest in Aeroplan, valuing the program at $10 billion.

In this morning’s call Rousseau doubled down on Air Canadaʻs commitment to its popular loyalty program. “Aeroplan remains core part of Air Canada’s commercial strategy … there is no intention of relinquishing control of this valuable property,” he said.

The $2.5 billion investment will strengthen Air Canada’s balance sheet.

JET FUEL EXPENSES UP 49% FOR Q2

The high cost of jet fuel has impacted the balance sheets for airlines globally. In June 2026 IATA estimated that fuel costs will rise by nearly 40% from $252 billion in 2025 to $350 billion in 2026.

Air Canadaʻs jet fuel expenses for Q2 2026 were up 49% year over year.

“$500 to 600 million is the headwind … to some degree non-recoverable,” said John Di Bert, EVP and CFO. Looking ahead to Q3 and Q4, “because it continues to be volatile … we’ve left a little bit of cushion. Q4 may not come down as  anticipated (in terms of fuel pricing),” he said. “There’s some bumpiness. It’s been very volatile.”

With strong demand and a good pricing environment, the airline does expect to recoup part of the higher jet fuel expenses in the second half of the year, said Mark Galardo, EVP & Chief Commercial Officer and President, Cargo.

“Premium and corporate increased 11% and 19% respectively,” said Galardo. “Demand remains constructive and our new international routes are performing very well.”

SHOULDER SEASON SURGE

Galardo also noted a surge in interest from travellers for leisure and corporate travel in the shoulder seasons, i.e. spring and fall. “We’re seeing promising demand signals in the shoulder season months. It’s a continuation of what we’ve seen over the past couple of years. Premium customers especially, both for leisure and corporate, have been travelling more in the shoulders than in the typical summer peak. Our international demand is really strong. Premium demand is quite strong. That sector is much more resilient. And this is one of the stronger fall seasons we’ve seen.”

Speaking of premium passengers, the team was asked about Air Canada’s unbundled (i.e. Basic) fare options for Premium Economy and Business Class. The new fares were introduced July 28. “Itʻs way too early to tell” how the new fares are being received, said Galardo. “The fares have only been in the market for barely more than a week.”

United Airlines, one of Air Canada’s partners and an airline that introduced unbundled premium fares in April 2026, is seeing “interesting” initial results for their new fares, he added.

LEADERSHIP TRANSITION: FROM ROUSSEAU TO VAN DER WERFF

With Rousseau retiring from Air Canada at the end of this month, and his successor Anko van der Werff set to take the helm by the end of January 2027, questions were asked about the 5-month leadership transition period.

“There’s no doubt the board and executive management have talked about this period,” said Rousseau. “Anko won’t be joining until the end of January [but] the path is very clear over the next several months. The board will coordinate with the executive group for that 5-month transition period. The governance has been really thought through, and everyone is very, very comfortable about the next 5 months.” The board has plenty of airline industry leadership experience, he added.

Lead image caption: Michael Rousseau, Air Canada President and CEO; John Di Bert, EVP and Chief Financial Officer; and Mark Galardo, EVP & Chief Commercial Officer and President, Cargo