Air Canada reported an increase in air cargo revenues for the first quarter of the year due to its domestic business performance and fuel surcharges, though international business fared less well.
Cargo operating revenues for the airline in the first quarter totalled C$259m, up 3.5% from C$250m in the first quarter of 2025.
“The increase was primarily driven by higher cargo volumes in all markets and yields in the domestic market,” said Air Canada.
“In addition, in response to the significant increase in the jet fuel prices, Air Canada Cargo implemented certain fuel surcharges, which, to a lesser extent, contributed to the increase.”
Referencing the Middle East conflict during the airline’s first quarter earning’s call, Mark Galardo, chief commercial officer and president, cargo, said the cargo division of Air Canada had increased spot rates and introduced a carrier surcharge to the market.
But the airline added: “The growth was partially offset by weaker yields year-over-year in international and transborder markets.”
Operating revenues for the whole airline increased 11% to C$5.8bn.
“In the first quarter, Air Canada built on the momentum of our best-ever fourth quarter to launch
strongly into 2026. We reported record operating revenues of $5.8 billion, up more than 11 per cent
from the same period in 2025,” said Michael Rousseau, president and chief executive.
“Our operating income of $117 million was a positive $225 million swing from a year ago, and we generated record adjusted EBITDA of $623 million, up 61%. These results show the efficacy of our strategy and the dedication of our employees, whom I thank for their hard work.”
Air Canada’s freighter fleet has not changed since March last year, with six Boeing 767 dedicated
freighter aircraft in service.
