LAS VEGAS, July 28, 2025 /PRNewswire/ — Allegiant Travel Company (NASDAQ: ALGT) today announced seven new nonstop routes connecting 12 cities across the country, including a new destination: Fort Myers, Florida via Southwest Florida International Airport (RSW). To celebrate, the company is offering one-way fares on the new routes as low as $49.*

The new routes, launching this fall, will provide convenient, nonstop service between these cities and expand Allegiant’s growing presence in popular leisure destinations. As more travelers seek value-driven travel options, Allegiant remains dedicated to making dream vacations possible with budget-friendly fares and excellent customer service.

“This expansion reflects our commitment to connecting underserved communities with affordable, convenient travel options,” said Drew Wells, Allegiant’s chief commercial officer. “By adding Fort Myers and increasing service to multiple beach cities, we’re providing travelers nonstop access to sunny destinations, meaning they spend less time at the airport and more time on vacation.”

The new routes between Fort Myers, Florida via Southwest Florida International Airport (RSW) and the following cities include:

• Allentown, Pennsylvania via Lehigh Valley International Airport (ABE) beginning November 13, 2025 with one-way fares as low as $69.*
• Appleton, Wisconsin via Appleton International Airport (ATW) beginning November 21, 2025 with one-way fares as low as $69.*
• Des Moines, Iowa via Des Moines International Airport (DSM) beginning November 21, 2025 with one-way fares as low as $69.*

The new route between Sarasota/Bradenton, Florida via Sarasota Bradenton International Airport (SRQ) and Toledo, Ohio via Toledo Express Airport (TOL) begins November 20, 2025 with one-way fares as low as $59.*

The new route between Fort Lauderdale, Florida via Fort Lauderdale-Hollywood International Airport (FLL) and Fort Wayne, Indiana via Fort Wayne International Airport (FWA) begins November 20, 2025 with one-way fares as low as $59.*

The new route between New Orleans via Louis Armstrong New Orleans International Airport (MSY) and Punta Gorda, Florida via Punta Gorda Airport (PGD) begins November 21, 2025 with one-way fares as low as $49.*

The new route between Nashville, Tennessee via Nashville International Airport (BNA) and Gulf Shores, Alabama via Gulf Shores International Airport (GUF) begins November 21, 2025 with one-way fares as low as $49.*

A hallmark of Allegiant’s leisure-focused business model is its network of all-nonstop flights, making air travel more seamless and accessible. Passengers spend less time at the airport and more time enjoying their vacation.

Tickets for all newly announced routes are now available. Flight days, times and the lowest fares can be found at Allegiant.com.

*About the introductory one-way fares:
Seats and dates are limited and fares are not available on all flights. Flights must be purchased by July 30, 2025 for travel by Feb. 10, 2026. Prices displayed includes taxes, carrier charges & government fees. Fare rules, routes and schedules are subject to change without notice. Optional baggage charges and additional restrictions may apply. For more details, optional services and baggage fees, please visit Allegiant.com.

NEW YORK & CHICAGO–(BUSINESS WIRE)– JetBlue (NASDAQ: JBLU) and United (NASDAQ: UAL) today announced they have completed the U.S. Department of Transportation (DOT) review of their Blue Sky collaboration and are able to proceed to implementation.

JetBlue and United appreciate Secretary Duffy, Assistant Secretary Edwards, and the entire team at the DOT for their review of Blue Sky. JetBlue and United will share more details in the coming weeks as implementation of the Blue Sky collaboration begins.

Blue Sky is a new and unique collaboration designed to give customers of both airlines even more options to find flights that fit their plans as well as new opportunities to earn and use MileagePlus^® miles and TrueBlue points across both airlines. Blue Sky will begin introducing new customer benefits starting this fall, rolling out in phases:

• United’s MileagePlus customers will be able to earn and use miles on most JetBlue flights. JetBlue’s TrueBlue members will be able to earn and use points for flights on United’s extensive domestic and international network.
• Through a traditional interline agreement, each airline will offer flights on one another’s website and app to make booking across the two airlines’ complementary networks simple and easy.
• The benefits of each airline’s loyalty program – priority boarding, complimentary access to preferred and extra legroom seats and same-day standby/switch – will be available when customers travel on the other airline’s aircraft.
• JetBlue will provide United access to slots at JFK International Airport for up to seven daily round-trip flights out of JFK Terminal 6 to begin as early as 2027. And, as part of a net-neutral exchange, JetBlue and United will exchange eight flight timings at Newark.
• United will move its website and mobile app’s ability to sell hotels, rental cars, cruises and travel insurance, on both a stand-alone and package basis, to new technology and services provided by JetBlue’s Paisly platform.

• Operating revenues of $5.632 billion, an increase of 2% versus last year.
• Operating income of $418 million with operating margin of 7.4% and adjusted EBITDA* of $909 million with adjusted EBITDA margin* of 16.1%.
• Premium revenues up 5% from the second quarter of 2024. 
• Cash flow from operating activities of $895 million and free cash flow* of $183 million.
• Completion of $500 million substantial issuer bid, with approximately 296 million total issued and outstanding shares at June 30 2025.
• Leverage ratio* of 1.4 at June 30, 2025.

MONTREAL, July 28, 2025 /CNW/ – Air Canada today reported its second quarter 2025 financial results.

“Air Canada’s second quarter 2025 results showcase the airline’s many strengths in the face of a challenging environment. We generated operating revenues exceeding $5.6 billion, up $113 million from the previous year. Operating income was $418 million, with an operating margin of 7.4%, and adjusted EBITDA was $909 million, with an adjusted EBITDA margin of 16.1%. Operationally, we had an excellent spring, leading all major North American carriers in on-time performance for both May and June, which corresponded with strong gains in customer service scores. We remained disciplined and consistent in executing on a long-term plan that is rooted in Air Canada’s proven commercial strategy, while navigating macroeconomic uncertainty and geopolitical tensions. We have strategically redirected capacity to high-demand markets and captured demand for premium services, leveraging the breadth and strength of our global network. Our results were further lifted by strong performances by Air Canada Cargo, Air Canada Vacations, and Aeroplan—each a key pillar of our diversified business,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.

“Our distinctive product offerings and the unwavering dedication of our employees were recognized at the Skytrax World Airline Awards. We are proud to have been recognized as the Best Airline in North America and as the sole North American carrier ranked among the global top 20. Additionally, we have received additional accolades, including Best Cabin Crew in both Canada and North America. I extend my heartfelt thanks to our employees for their commitment to excellence and professionalism in safely transporting our 11.6 million customers this quarter with care and class.”

“A key pillar of our strategy is delivering value to our shareholders through effective capital allocation programs. Building on the successful reinstatement in 2024 of our normal course share purchase program, we completed a $500 million substantial issuer bid during the quarter, purchasing 26.6 million shares for cancellation. Since then, we have also fully repaid our convertible notes in cash upon maturity in July. As we look ahead, we are excited about our upcoming fleet additions and the opportunities they will unlock. Our confidence in our business outlook remains solid and we are reaffirming our financial guidance for the full year 2025.”

*Adjusted CASM, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted EBITDA margin, leverage ratio, net debt, adjusted pre-tax income (loss), adjusted net income (loss), adjusted earnings (loss) per share, and free cash flow are referred to in this news release. Such measures are non-GAAP financial measures, non-GAAP ratios, or supplementary financial measures, are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results. Refer to the “Non-GAAP Financial Measures” section of this news release for descriptions of these measures, and for a reconciliation of Air Canada non-GAAP measures used in this news release to the most comparable GAAP financial measure. Leverage ratio of 1.0 at June 30, 2024. Adjusted EBITDA and operating income for the trailing 12-month periods ended June 30, 2025 were $3.515 billion and $1.096 billion, respectively ($3.718 billion and $1.971 billion, respectively for the trailing 12-month periods ended June 30, 2024).

Second Quarter 2025 Financial Results

• Operating revenues of $5.632 billion
• Operating expenses of $5.214 billion
• Operating income of $418 million with an operating margin of 7.4% and adjusted EBITDA of $909 million with an adjusted EBITDA margin of 16.1%
• Adjusted pre-tax income of $300 million
• Net income of $186 million and diluted earnings per share of $0.51
• Adjusted net income of $207 million and adjusted earnings per diluted share of $0.60
• Adjusted CASM* of 14.4 cents
• Net cash flows from operating activities of $895 million and free cash flow of $183 million

Outlook

For the third quarter of 2025, Air Canada plans to increase its ASM capacity between 3.25% and 3.75% from the same quarter in 2024.

For the full year 2025, Air Canada is reiterating its guidance previously provided on May 8, 2025 and updating certain major assumptions. Full year 2025 guidance is as follows:

Metric	2025 Guidance
Adjusted EBITDA	$3.2 billion to $3.6 billion
ASM capacity	1% to 3% increase versus 2024
Adjusted CASM	14.25 ¢ to 14.50 ¢
Free cash flow	Break even +/- $200 million

Major Assumptions

Air Canada made assumptions in providing its guidance—including a marginal Canadian GDP growth for 2025. Air Canada now assumes that the Canadian dollar will trade, on average, at C$1.39 per U.S. dollar for the full year 2025 (previously $1.40) and that the price of jet fuel will average C$0.92 (previously C$0.88) per litre for the full year 2025.

Air Canada’s guidance constitutes forward-looking information within the meaning of applicable securities laws and is subject to important risks and uncertainties, including in relation to statements or actions by governments and uncertainty relating to the imposition of (or threats to impose) tariffs on Canadian exports or imports and their resulting impacts on the Canadian, North American and global economies and travel demand. Please see the discussion below under Caution Regarding Forward-looking Information. 

2028 Targets 

On December 17, 2024, Air Canada announced its long-term 2028 financial targets and 2030 aspirations described below:

Metric	2028 Targets	2030 Aspirations
Operating revenues	Approximately $30 billion	Exceed $30 billion
Adjusted EBITDA margin*	Greater than or equal to 17%	Between 18% and 20%
Net cash flows from operating activities as a percentage of adjusted EBITDA*	Approximately 90%	Approximately 90%
Additions to property, equipment and intangible assets as a percentage of operating revenues*	Lower than or equal to 12%	Lower than 12%
Free cash flow margin*	Approximately 5%	Approximately 5%
Return on invested capital*	Not provided	Greater than or equal to 12%
Fully diluted share count	Lower than 300 million shares	Lower than 300 million shares

*Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted EBITDA margin, net cash flows from operating activities as a percentage of adjusted EBITDA, additions to property, equipment and intangible assets as a percentage of operating revenues, free cash flow margin and return on invested capital are referred to in this news release. Such measures are non-GAAP financial measures, non-GAAP ratios, or supplementary financial measures, are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results.

The 2028 long-term targets and 2030 aspirations provided in this news release do not constitute guidance or outlook but rather are provided for the purpose of assisting the reader in measuring progress toward Air Canada’s objectives. The reader is cautioned that using this information for other purposes may be inappropriate. Air Canada may review and revise these targets and aspirations including as economic, geopolitical, market and regulatory environments change. These targets and aspirations are used as goals as Air Canada executes on its strategic priorities, and they assume a normal business environment. Air Canada’s ability to achieve these targets and aspirations is also dependent on its success in achieving initiatives and business objectives that are described in Air Canada’s 2024 Investor Day presentations, which are available at aircanada.com/investors, including those relating to increasing revenues, growing fleet and network capacity, and successfully executing on other key investments and initiatives, as well as other major assumptions, including those described in this news release, and are subject to a number of risks and uncertainties.

Non-GAAP Financial Measures

Below is a description of certain non-GAAP financial measures and ratios used by Air Canada to provide readers with additional information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results. The non-GAAP financial measures or ratios described in this section typically have exclusions or adjustments that include one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of past or future operating results. These items are excluded because the company believes these may distort the analysis of certain business trends and render comparative analysis across periods less meaningful and their exclusion generally allows for a more meaningful analysis of Air Canada’s operating expense performance and may allow for a more meaningful comparison to other airlines.

Air Canada excludes the effect of impairment of assets, if any, when calculating adjusted CASM, adjusted EBITDA, adjusted EBITDA margin, adjusted pre-tax income (loss) and adjusted net income (loss) as it may distort the analysis of certain business trends and render comparative analysis across periods or to other airlines less meaningful.

Adjusted CASM

Air Canada uses adjusted CASM to assess the operating and cost performance of its ongoing airline business without the effects of aircraft fuel expense, the cost of ground packages at Air Canada Vacations, freighter costs and other items discussed above. These items may distort the analysis of certain business trends and render comparative analysis across periods less meaningful and their exclusion generally allows for a more meaningful analysis of Air Canada’s operating expense performance and may allow for a more meaningful comparison to that of other airlines.

In calculating adjusted CASM, aircraft fuel expense is excluded from operating expense results as it fluctuates widely depending on many factors, including international market conditions, geopolitical events, jet fuel refining costs and Canada/U.S. currency exchange rates. Air Canada also incurs expenses related to ground packages at Air Canada Vacations which some airlines, without comparable tour operator businesses, may not incur. In addition, these costs do not generate ASMs and therefore excluding these costs from operating expense results provides for a more meaningful comparison across periods when such costs may vary.

Air Canada also incurs expenses related to the operation of freighter aircraft which some airlines, without comparable cargo businesses, may not incur. Air Canada had six Boeing 767 dedicated freighter aircraft in service as at June 30, 2025, and at June 30, 2024. These costs do not generate ASMs and therefore excluding these costs from operating expense results provides for a more meaningful comparison of the passenger airline business across periods.

The following tables provide the adjusted CASM reconciliation to GAAP operating expense for the periods indicated.

(Canadian dollars in millions, except where indicated)	Second Quarter						First Six Months
	2025		2024		Change		2025		2024		Change
Operating expense – GAAP	$	5,214	$	5,053	$	161	$	10,518	$	10,268	$	250
Adjusted for:
Aircraft fuel		(1,148)		(1,333)		185		(2,334)		(2,587)		253
Ground package costs		(157)		(137)		(20)		(530)		(472)		(58)
Freighter costs (excluding fuel)		(42)		(38)		(4)		(84)		(73)		(11)
Operating expense, adjusted for the above-noted items	$	3,867	$	3,545	$	322		7,570		7,136		434
ASMs (millions)		26,860		26,203		2.5 %		51,100		50,540		1.1 %
Adjusted CASM (cents)	¢	14.40	¢	13.53	¢	0.87	¢	14.81	¢	14.12	¢	0.69

(Canadian dollars in millions, except where indicated)	Full Year
	2024		2023
Operating expense – GAAP	$	20,992	$	19,554
Adjusted for:
Aircraft fuel		(5,118)		(5,318)
Ground package costs		(782)		(720)
Freighter costs (excluding fuel)		(163)		(157)
Provision for contractual lease obligations		(34)		–
Pension plan amendments		(490)		–
Operating expense, adjusted for the above-noted items		14,405		13,359
ASMs (millions)		104,381		99,012
Adjusted CASM (cents)	¢	13.80	¢	13.49

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and impairment) and adjusted EBITDA margin (adjusted EBITDA as a percentage of operating revenues) are commonly used in the airline industry and are used by Air Canada as a means to view operating results and the related margin before interest, taxes, depreciation, amortization and impairment and other items discussed above. These items can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets.

Adjusted EBITDA and adjusted EBITDA margin are reconciled to GAAP operating income (loss) as follows:

	Second Quarter						First Six Months
(Canadian dollars in millions, except where indicated)	2025		2024		Change		2025		2024		Change
Operating income – GAAP	$	418	$	466	$	(48)	$	310	$	477	$	(167)
Add back:
Depreciation, amortization and impairment		491		448		43		986		890		96
Adjusted EBITDA	$	909	$	914	$	(5)	$	1,296	$	1,367	$	(71)
Operating revenues	$	5,632	$	5,519	$	113	$	10,828	$	10,745	$	83
Operating margin (%)		7.4		8.4		(1.0) pp		2.9		4.4		(1.5) pp
Adjusted EBITDA margin (%)		16.1		16.6		(0.5) pp		12.0		12.7		(0.7) pp

Adjusted Pre-tax Income (Loss)

Adjusted pre-tax income (loss) is used by Air Canada to assess the overall pre-tax financial performance of its business without the effects of foreign exchange gains or losses, net interest relating to employee benefits, gains or losses on financial instruments recorded at fair value, gains or losses on sale and leaseback of assets, gains or losses on disposal of assets, gains or losses on debt settlements and modifications and other items discussed above. These items may distort the analysis of certain business trends and render comparative analysis across periods or to other airlines less meaningful.

A corporate charge for the settlement of tax matters related to the 2019 acquisition of Aeroplan was recorded in the second quarter of 2025. As this item is non-recurring and cash-neutral to Air Canada, since it recorded a related tax refund, it has been excluded from adjusted pre-tax income.

Adjusted pre-tax income is reconciled to GAAP income (loss) before income taxes as follows:

	Second Quarter						First Six Months
	2025		2024		Change		2025		2024		Change
Income (loss) before income taxes – GAAP	$	103	$	404	$	(301)	$	(64)	$	339	$	(403)
Adjusted for:
Foreign exchange (gain) loss		190		2		188		201		(57)		258
Net interest relating to employee benefits		(5)		(6)		1		(10)		(11)		1
Gain on financial instruments recorded at fair value		(6)		(29)		23		(60)		(40)		(20)
Loss on debt settlements		–		–		–		–		46		(46)
Other corporate expenses		18		–		18		18		–		18
Adjusted pre-tax income	$	300	$	371	$	(71)	$	85	$	277	$	(192)

Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share – Diluted

Air Canada uses adjusted net income (loss) and adjusted earnings (loss) per share – diluted as a means to assess the overall financial performance of its business without the after-tax effects of foreign exchange gains or losses, net financing expense relating to employee benefits, gains or losses on financial instruments recorded at fair value, gains or losses on sale and leaseback of assets, gains or losses on debt settlements and modifications, gains or losses on disposal of assets and other items discussed above. These items may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful.

A corporate charge for the settlement of tax matters related to the 2019 acquisition of Aeroplan was recorded in the second quarter of 2025. As this item is non-recurring and cash-neutral to Air Canada, since it recorded a related tax refund, it has been excluded from adjusted net income.

Adjusted net income and adjusted earnings  per share are reconciled to GAAP net income as follows:

	Second Quarter						First Six Months
	2025		2024		Change		2025		2024		Change
Net income – GAAP	$	186	$	410	$	(224)	$	84	$	329	$	(245)
Adjusted for:
Foreign exchange (gain) loss		190		2		188		201		(57)		258
Net interest relating to employee benefits		(5)		(6)		1		(10)		(11)		1
Gain on financial instruments recorded at fair value		(6)		(29)		23		(60)		(40)		(20)
Loss on debt settlements		–		–		–		–		46		(46)
Other corporate expenses		18		–		18		18		–		18
Income tax, including for the above reconciling items		(176)		(8)		(168)		(176)		6		(182)
Adjusted net income	$	207	$	369	$	(162)	$	57	$	273	$	(216)
Weighted average number of outstanding shares used in computing diluted income per share (in millions)		341		376		(35)		344		376		(32)
Adjusted earnings (loss) per share – diluted	$	0.60	$	0.98	$	(0.38)	$	0.16	$	0.73	$	(0.57)

The table below reflects the share amounts used in the computation of basic and diluted earnings per share on an adjusted earnings per share basis:

(In millions)	Second Quarter		First Six Months
	2025	2024	2025	2024
Weighted average number of shares outstanding – basic	323	358	326	358
Effect of dilution	18	18	18	18
Weighted average number of shares outstanding – diluted	341	376	344	376

Free Cash Flow

Air Canada uses free cash flow as an indicator of the financial strength and performance of its business, indicating the amount of cash Air Canada can generate from operations and after capital expenditures. Free cash flow is calculated as net cash flows from operating activities minus additions to property, equipment, and intangible assets, and is net of proceeds from sale and leaseback transactions.

The table below reconciles free cash flow to net cash flows from (used in) operating activities for the periods indicated.

	Second Quarter						First Six Months
(Canadian dollars in millions)	2025		2024		$ Change		2025		2024		$ Change
Net cash flows from operating activities	$	895	$	924	$	(29)	$	2,421	$	2,516	$	(95)
Additions to property, equipment, and intangible assets		(712)		(473)		(239)		(1,407)		(1,009)		(398)
Free cash flow (1)	$	183	$	451	$	(268)	$	1,014	$	1,507	$	(493)

Net Debt

Net debt is a capital management measure and a key component of the capital managed by Air Canada and provides management with a measure of its net indebtedness.

Net Debt to Trailing 12-Month Adjusted EBITDA (Leverage Ratio)

Net debt to trailing 12-month adjusted EBITDA ratio (also referred to as “leverage ratio”) is commonly used in the airline industry and is used by Air Canada as a means to measure financial leverage. Leverage ratio is calculated by dividing net debt by trailing 12-month adjusted EBITDA.

The table below reconciles leverage ratio to Air Canada’s net debt balances as at the dates indicated.

(Canadian dollars in millions)	June 30, 2025		December 31, 2024		June 30, 2024
Total long-term debt and lease liabilities	$	10,247	$	10,915	$	10,858
Current portion of long-term debt and lease liabilities		1,547		1,755		1,619
Total long-term debt and lease liabilities (including current portion)		11,794		12,670		12,477
Less cash, cash equivalents and short- and long-term investments		(7,037)		(7,752)		(8,869)
Net debt	$	4,757	$	4,918	$	3,608
Adjusted EBITDA (trailing 12 months)	$	3,515		3,586	$	3,718
Net debt to adjusted EBITDA ratio		1.4		1.4		1.0

The tables below present comparative figures for the twelve-month periods ending December 31, 2023 and 2024, in reference to Air Canada’s full-year 2025 guidance, 2028 financial targets, and 2030 aspirations.

(Canadian dollars in millions, except where indicated)	2024 Results	2023 Results
ASM Capacity	104.381 billion	99.012 billion
Adjusted CASM (cents)	13.80¢	13.49¢
Operating expenses	$20.992 billion	$19.554 billion
Adjusted EBITDA	$3.586 billion	$3.982 billion
Operating income	$1.263 billion	$2.279 billion
Free cash flow	$1.294 billion	$2.756 billion
Net cash flows from operating activities	$3.930 billion	$4.320 billion

(Canadian dollars in millions, except where indicated)	20241	20231
Operating revenues	$22.255 billion	$21.833 billion
Adjusted EBITDA margin	16 %	18 %
Operating margin	6 %	10 %
Net cash flows from operating activities as a percentage of adjusted EBITDA	110 %	108 %
Additions to property, equipment and intangible assets as a percentage of operating revenues	12 %	7 %
Free cash flow margin	6 %	13 %
Return on invested capital	14 %	18 %
Income before income taxes	$515 million	$2.212 billion
Fully diluted share count	Approximately 376 million shares	Approximately 376 million shares

1Percentage amounts in the table above may not calculate exactly due to rounding.

The 2028 long-term targets and 2030 aspirations provided in this news release do not constitute guidance or outlook but rather are provided for the purpose of assisting the reader in measuring progress toward Air Canada’s objectives. The reader is cautioned that using this information for other purposes may be inappropriate. Air Canada may review and revise these targets and aspirations including as economic, geopolitical, market and regulatory environments change. These targets and aspirations are used as goals as Air Canada executes on its strategic priorities, and they assume a normal business environment. Air Canada’s ability to achieve these targets and aspirations is also dependent on its success in achieving initiatives and business objectives that are described in Air Canada’s 2024 Investor Day presentations, which are available at aircanada.com/investors, including those relating to increasing revenues, growing fleet and network capacity, and successfully executing on other key investments and initiatives, as well as other major assumptions, including those described in this news release, and are subject to a number of risks and uncertainties.

Net cash flows from operating activities as a percentage of adjusted EBITDA

Air Canada uses net cash flows from operating activities as a percentage of adjusted EBITDA to measure cash conversion from adjusted EBITDA. This measure is defined as the ratio of net cash flows from operating activities to adjusted EBITDA.

Additions to property, equipment and intangible assets as a percentage of operating revenues

Air Canada uses additions to property, equipment and intangible assets as a percentage of operating revenues to measure the proportion of operating revenues that are reinvested as capital expenditures. This measure is defined as the ratio of additions to property, equipment and intangible assets to operating revenues.

Free cash flow margin

Air Canada uses free cash flow margin to measure the amount its free cash flow represents as a percentage of operating revenues. This measure is defined as the ratio of free cash flow to operating revenues.

The table below presents the quantitative reconciliation for adjusted EBITDA, adjusted EBITDA margin, net cash flows from operating activities as a percentage of adjusted EBITDA, additions to property, equipment and intangible assets as a percentage of operating revenues, free cash flow and free cash flow margin, in each case for the financial years ended December 31, 2024 and 2023.

(in millions, except where indicated)	2024		2023
Total operating revenues – GAAP	$	22,255	$	21,833
Operating income – GAAP	$	1,263	$	2,279
Add back:
Depreciation and amortization		1,799		1,703
EBITDA		3,062		3,982
Add back:
Provision for contractual lease obligations		34		–
Pension plan amendments		490		–
Adjusted EBITDA	$	3,586	$	3,982
Net cash flows from operating activities	$	3,930	$	4,320
Additions to property, equipment and intangible assets		(2,636)		(1,564)
Free cash flow	$	1,294	$	2,756
Operating margin		6 %		10 %
Adjusted EBITDA margin		16 %		18 %
Net cash flows from operating activities as a percentage of adjusted EBITDA		110 %		108 %
Additions to property, equipment and intangible assets as a percentage of operating revenues		12 %		7 %
Free cash flow margin		6 %		13 %

Return on invested capital

Air Canada uses return on invested capital (ROIC) to assess the efficiency with which it allocates its capital to generate returns. ROIC is calculated as the ratio of adjusted pre-tax income (loss), excluding interest expense, to invested capital. Invested capital includes average year-over-year long-term debt and lease obligations, average year-over-year shareholders’ equity, and the embedded derivative on Air Canada’s convertible notes. In 2020, Air Canada issued convertible unsecured notes. Air Canada had the option to deliver cash or a combination of cash and shares on the conversion date in lieu of shares, giving rise to an embedded derivative that was included as part of the definition of capital. Air Canada calculates invested capital on a book value-based method when calculating ROIC.

Return on invested capital is reconciled to GAAP income (loss) before income taxes as follows:

(in millions, except where indicated)	2024		2023
Income before income taxes – GAAP	$	515	$	2,212
Adjusted for:
Provision for contractual lease obligations		34		–
Pension plan amendments		490		–
Foreign exchange (gain) loss		400		(389)
Net interest relating to employee benefits		(22)		(25)
(Gain) on financial instruments recorded at fair value		(28)		(115)
Loss on debt settlements and modifications		8		10
Adjusted pre-tax income	$	1,397	$	1,693
Add back:
Interest expense		763		944
Adjusted pre-tax income before interest expense	$	2,160	$	2,637
Invested capital:
Average long-term debt and lease liabilities (including current portion)		13,266		15,084
Embedded derivative on convertible notes		45		56
Average shareholders’ equity (deficiency)		1,592		(380)
Invested capital	$	14,903	$	14,761
Return on invested capital (%)		14 %		18 %

Second Quarter 2025 Conference Call

Air Canada will host its quarterly analysts’ call on Tuesday, July 29, 2025, at 8:00 a.m. ET. Michael Rousseau, President and Chief Executive Officer, John Di Bert, Executive Vice President and Chief Financial Officer, and Mark Galardo, Executive Vice President and Chief Commercial Officer and President, Cargo, will present the results and be available for analysts’ questions. Immediately following the analysts’ Q&A session, Mr. Di Bert and Pierre Houle, Vice President and Treasurer, will be available to answer questions from term loan B lenders and holders of Air Canada bonds.

Media and the public may access this call on a listen-in basis. Details are as follows:

Webcast:	https://edge.media-server.com/mmc/p/k3xfbttp
By telephone:	647-932-3411 or 1-800-715-9871 (toll-free)
	Conference ID 4600266
	Please allow 10 minutes to be connected to the conference call.

---

• Airline will begin its new seating and boarding process January 27, 2026 
• Seat maps on Southwest.com allow Customers to choose the seat they prefer

DALLAS, July 29, 2025 /PRNewswire/ — Southwest Airlines Co. (NYSE: LUV) Customers have more choice from booking to arrival beginning today with assigned and premium seating available for purchase at Southwest.com^®. In addition, the airline’s previously announced service to St. Thomas, United States Virgin Islands is now on sale.

The Choice is Yours

All tickets purchased for travel starting Jan. 27, 2026, will feature assigned seating.  Moreover, Southwest Airlines^® Customers can choose their preferred fare bundle, including the opportunity to purchase assigned and premium seating and select a seat at booking. Customers connecting into the Southwest^® network from transoceanic journeys with airline partners, currently Icelandair and China Airlines, will be able to select seats for all flights in their itineraries. Flights operating until Jan. 27, 2026, will continue with open seating.

See You in St. Thomas

St. Thomas, USVI – the first of three new destinations Southwest plans to announce this summer – is now available for booking at Southwest.com for year-round trips. The first daily roundtrip flight between St. Thomas and Orlando is scheduled for Feb. 5, 2026. Peak-day service to and from Baltimore/Washington is slated to begin Feb. 7, 2026.

Southwest will volunteer its next new destination when its schedule is extended in August.

Seeking the Sun

Southwest’s schedule is available for booking through March 4, 2026, and the airline is giving Customers many sunny locales to choose from during the coldest months. Seasonal service on numerous routes connecting the northeast and Florida is set to return, as is service connecting the upper Midwest to Phoenix and Palm Springs, Calif. Customers in four locations looking to beat the Spring Break crowds at Orlando’s theme parks are in luck–the airline is returning seasonal service between Orlando and Boston, Portland, Maine, Salt Lake City, and Tulsa, Oklahoma.

Updated agreement modernizes ONT’s financial foundation and strengthens airline partnerships

ONTARIO, Calif., July 28, 2025 /PRNewswire/ — Southern California’s Ontario International Airport (ONT) is poised for continued growth and long-term sustainability following approval of a new Use and Lease Agreement (ULA) by the Ontario International Airport Authority (OIAA) Board of Commissioners.

The 132-page agreement replaces a version adopted in 1999, when ONT was under the ownership of Los Angeles World Airports. The updated ULA reflects ONT’s growth as a dynamic, independent aviation gateway and outlines the framework for airline rates, charges, and operational responsibilities at the airport.

“This agreement represents years of work and thoughtful negotiation, and we’re proud of the result,” said Alan D. Wapner, President of the OIAA Board of Commissioners. “It gives our airport a solid financial framework to continue its remarkable growth while preserving the collaborative spirit that has made ONT a success story in Southern California aviation.”

The new ULA provides greater transparency in how funds are used at ONT and locks in 75% of ground transportation revenue for participating airlines. For OIAA, it allows added flexibility to advance needed capital projects in a timely and cost-effective manner.

Negotiated over the past years with significant input from airline stakeholders, the agreement balances financial sustainability with mutual growth and investment.

“This agreement is more than just a contract, it’s a reflection of the strong partnerships we’ve built with our airline partners and our shared commitment to grow together in a way that benefits our travelers, our region, and our industry,” said Atif Elkadi, Chief Executive Officer of the OIAA. “It also speaks to the financial stewardship behind the scenes and our CFO, Celeste Heinonen was instrumental in ensuring this deal brought clarity, flexibility, and long-term value as we continue delivering a world-class airport experience.”

The agreement takes effect immediately.

“It’s a win for our partners, our passengers and the communities we serve,” Wapner said.

About Ontario International Airport
Ontario International Airport (ONT) is California’s most popular mid-sized airport, according to J.D. Power’s most recent North America Airport Satisfaction Study. Located in the Inland Empire, ONT is approximately 35 miles east of downtown Los Angeles in the center of Southern California. It is a full-service airport which offers nonstop commercial jet service to two dozen major airports in the U.S., Mexico, Central America and Taiwan. More information is available at www.flyOntario.com. Follow @flyONT on Facebook, X (formerly Twitter) and Instagram.

About the Ontario International Airport Authority (OIAA)
The OIAA was formed in August 2012 by a Joint Powers Agreement between the City of Ontario and the County of San Bernardino to provide overall direction for the management, operations, development and marketing of ONT for the benefit of the Southern California economy and the residents of the airport’s four-county catchment area. OIAA leaders include Ontario Mayor pro Tem Alan D. Wapner (President), San Bernardino County Supervisor Curt Hagman (Vice President), Ontario City Council Member Jim W. Bowman (Secretary), Retired Riverside Mayor Ronald O. Loveridge (Treasurer) and retired business executive Julia Gouw (Commissioner).

Copyright Photo: Southwest Airlines Boeing 737-7H4 WL N728SW (msn 27860) SNA (Michael B. Ing). Image: 954359.

Photographs of Delta Air Lines Douglas DC-8-11’s in the 1959 “pre-widget” delivery livery, particularly in color, are almost non-existent. That is what makes this shot of “N803E” at Atlanta truly a rare gem. Delta beat United Air Lines by just a few hours in inaugurating the world’s first service with this pioneering first generation jetliner on 9/18/59 from NY-Idlewild to Atlanta (where the aircraft used the one and only “Jetway” in use at the destination airport at the time). Delta would go on to fly not only these very early -11’s, but also the DC-8-33/-51/-61/-71 variants (with the last stretched, re-engined DC-8-71 not being retired until 1989, thirty years after service start with the aircraft type). The original JT3C powered -11’s, such as N803E, were eventually converted to JT3D turbofan equipped -51’s during the early 1960’s, at which time the earliest version of the still in use triangular “widget” logo was applied to the aircraft.

DALLAS, July 23, 2025 /PRNewswire/ — Southwest Airlines Co. (NYSE: LUV) (the “Company”) today reported its second quarter 2025 financial results and Company highlights:

• Net income of $213 million, or $0.39 income per diluted share
• Net income, excluding special items¹, of $230 million, or $0.43 income per diluted share
• Returned $1.6 billion to Shareholders through a combination of share repurchases and dividends
• Launched bag fees with financial benefit exceeding expectations and no negative operational impact
• Rolled out new basic economy product structure, laying the foundation for future product differentiation
• Maintaining targets of $1.8 billion full year 2025 and $4.3 billion full year 2026 incremental earnings before interest and taxes, excluding special items (“EBIT”²) contribution from slate of initiatives
• While early, recent industry demand shows signs of improvement off of depressed second quarter 2025 levels, which combined with moderated capacity across the industry and Southwest-specific initiatives, creates a constructive backdrop for the second half of the year
• Providing updated full year 2025 guidance for EBIT² in the range of $600 million to $800 million
• Board of Directors authorized a new $2.0 billion share repurchase program expected to be completed over a period of up to two years

Bob Jordan, President, Chief Executive Officer, & Vice Chairman of the Board of Directors, stated, “We continued to make meaningful progress against our transformational plan in second quarter, most notably implementing bag fees and a basic economy product. We had an exceptional operational rollout and continued to deliver outstanding service—a testament to our People. These initiatives are coming online quickly, and we are pleased with performance thus far, including bag fee revenue exceeding expectations. We are encouraged by the incremental fare product buy up that is already occurring at this early stage and in advance of assigned and premium seating that we will begin selling next week for flights beginning January 2026. We have already realized approximately one-third of our $1.8 billion 2025 initiative EBIT² target in first half 2025 and remain highly confident in our ability to realize the remaining amount during the second half of the year, according to our plan. The value of these initiatives accelerates throughout second half 2025 and even more meaningfully into 2026. Underscoring belief in our transformational plan, strong management execution, and the ability to deliver significant value for Shareholders, our Board of Directors has authorized a new $2.0 billion share repurchase program, expected to be completed over a period of up to two years.”

Guidance and Outlook:

The following tables provide select financial guidance for third quarter 2025 and full year 2025, and select full year 2025 and 2026 targets.

		3Q 2025 Estimation
RASM (a), year-over-year		Down 2% to up 2%
ASMs (b), year-over-year		~Flat
Fuel cost per gallon3		$2.40 to $2.50
ASMs per gallon (fuel efficiency)		82 to 84
CASM-X (c), year-over-year1,4		Up 3.5% to 5.5%
Scheduled debt repayments (millions)		~$6
Interest expense (millions)		~$35
‌
		2025 Estimation
EBIT2 (millions)		$600 to $800
‌
				2025 Target					2026 Target
EBIT2 contribution from initiatives (billions)				~$1.8					~$4.3

‌

(a) Operating revenue per available seat mile (“RASM” or “unit revenues”).

(b) Available seat miles (“ASMs” or “capacity”).

(c) Operating expenses per available seat mile, excluding fuel and oil expense, special items, and profit sharing (“CASM-X” or “unit costs”).

Key Initiative Highlights:

• Introduced bag fees with initial financial benefit exceeding expectations
• Implemented basic economy product, laying the foundation for future product differentiation
• Reintroduced flight credit expiration
• Announced partnership with China Airlines and three new gateways for Icelandair partnership
• Completed retrofits of more than 220 aircraft for extra legroom seating
• Announced sell date of July 29, 2025, for assigned and premium seating, for travel beginning January 27, 2026
• Announced intention to commence new service at Cyril E. King International Airport on St. Thomas beginning early next year
• Completed the September 2024 $2.5 billion share repurchase authorization in second quarter 2025, repurchasing the remaining $1.5 billion through an accelerated share repurchase program. Final settlement of shares purchased through the second quarter 2025 accelerated share repurchase program is expected to occur by the end of July 2025

Revenue Results and Outlook:

• Second quarter 2025 passenger revenues were $6.6 billion, a 1.3 percent decrease, year-over-year
• Second quarter 2025 operating revenues were $7.2 billion, a 1.5 percent decrease, year-over-year
• Second quarter 2025 RASM decreased 3.1 percent on capacity up 1.6 percent, both year-over-year—in line with the Company’s previous guidance range

Domestic leisure travel stabilized during second quarter 2025, with recent trends showing signs of improvement, and the Company once again outperformed its large industry peers on domestic unit revenue. The Company’s portfolio of recently implemented initiatives provided incremental revenue in second quarter 2025 that is expected to ramp up as the year progresses.

Following the May 28, 2025 launch of its basic economy product, the Company experienced a temporary reduction in the conversion rate of basic economy on its website. The Company took swift action and refined its booking flow and marketing approach in an effort to reduce friction, as well as offer additional promotional activity, and bookings and conversion rates quickly returned to expected levels. This resulted in an impact to second quarter 2025 year-over-year RASM of nearly one-half point, and an estimated impact to third quarter 2025 year-over-year RASM of approximately one point.

The Company expects third quarter 2025 unit revenues to be in the range of down 2 percent to up 2 percent on roughly flat capacity, both on a year-over-year basis. This guidance range assumes a modest sequential improvement in demand. Company-specific initiatives provide a unique offset to the broader industry revenue impact, and will continue to accelerate throughout third quarter 2025. Third quarter 2024 RASM included approximately one point of positive year-over-year impact from the CrowdStrike industry event.

The Company has provided full year 2025 EBIT² guidance, as well as a reconciliation to its previous full year guide included in the materials accompanying this release. The Company’s EBIT² guidance assumes further sequential improvement from third quarter 2025, driven by accelerating incremental revenue from Company-specific initiatives, the recovery of the temporary basic economy optimization impact, and anticipated improvement in domestic leisure travel trends.

Non-Fuel Costs and Outlook:

• Second quarter 2025 operating expenses increased 0.9 percent, year-over-year, to $7.0 billion
• Second quarter 2025 operating expenses, excluding fuel and oil expense, special items, and profit sharing¹, increased 6.4 percent, year-over-year
• Second quarter 2025 CASM-X increased 4.7 percent, year-over-year—in line with the Company’s previous guidance range

The Company’s second quarter 2025 CASM-X year-over-year increase included an approximate one-half point headwind from a non-cash mark-to-market adjustment for nonqualified deferred compensation plans which was driven by recent strong stock market performance.

The Company continues to expect to achieve its $370 million cost reduction target this year. The Company anticipates third quarter 2025 CASM-X to increase in the range of 3.5 percent to 5.5 percent, on roughly flat capacity, both on a year-over-year basis. This increase is driven primarily by the continuation of inflationary pressures, including those associated with labor contracts ratified in 2024, as well as approximately one point from the timing of engine overhaul expenses and one-half point from aircraft retrofit costs in advance of extra legroom seating launching in January 2026. Excluding the impact of book gains from fleet transactions in the fourth quarter of both years, the Company continues to expect fourth quarter 2025 CASM-X to be up low-single digits, year-over-year. The Company remains focused on driving efficiencies to offset overall inflationary cost pressures and achieve its multi-year cost reduction targets.

Fuel Costs and Outlook:

• Second quarter 2025 fuel costs were $2.32 per gallon—slightly above the Company’s previous guidance range
• Second quarter 2025 fuel efficiency improved 2.9 percent, year-over-year, primarily due to operating more Boeing 737-8 (“-8”) aircraft, the Company’s most fuel-efficient aircraft, as a percentage of its fleet

During second quarter 2025, the Company terminated its remaining portfolio of fuel hedging contracts, which were scheduled to settle through 2027, to effectively close its fuel hedging portfolio. The cash proceeds from this transaction totaled approximately $40 million, which will reduce future premium costs. The remaining net premium costs of approximately $209 million will be recognized as an increase to Fuel and oil expense in the periods the originally forecasted transactions occur, specifically $72 million in the second half of 2025, $115 million in 2026, and $22 million in 2027. As of June 30, 2025, the Company had no fuel hedging contracts outstanding and its fuel hedging program has been discontinued.

Capacity, Fleet, and Capital Spending:

• Second quarter 2025 capacity increased 1.6 percent, year-over-year—in line with the Company’s previous guidance range
• The Company received 17 -8 aircraft and retired seven Boeing 737-700 aircraft in second quarter 2025, ending the quarter with 810 aircraft
• Second quarter 2025 capital expenditures were $635 million, driven primarily by aircraft-related capital spending, as well as technology, facilities, and operational investments

The Company previously announced proactive capacity reductions in the second half of 2025 in an effort to better accommodate the current demand environment and capture associated cost savings, and continues to expect full year 2025 capacity to be up roughly 1 percent, year-over-year. This modest growth is driven entirely by an increase in aircraft utilization provided by redeye flying and turn time reduction initiatives.

The Company has updated its fleet planning assumptions to 47 Boeing -8 aircraft deliveries in 2025, from its prior estimate of 38, as The Boeing Company (“Boeing”) continues to ramp up production. With these incremental deliveries, the Company now expects to retire approximately 55 aircraft in 2025, compared with its previous estimate of approximately 50 retirements this year. This includes the sale of five Boeing 737-800 (“-800”) aircraft expected to occur in the second half of 2025. The Company continues to expect additional new aircraft deliveries to facilitate the retirement of aircraft from its existing fleet in support of its fleet monetization and capital allocation strategies.

The Company continues to expect its 2025 capital spending to be in the range of $2.5 billion to $3.0 billion, including the additional aircraft deliveries now expected, as well as the impact of the expected sale of five -800 aircraft this year.

Liquidity and Capital Deployment:

• The Company paid off $1.6 billion of convertible notes in cash and prepaid $976 million for the first tranche of the Payroll Support Program notes in second quarter 2025
• The Company ended second quarter 2025 with $3.8 billion in cash and cash equivalents and short-term investments, and a fully available revolving credit line of $1.0 billion
• The Company returned $1.6 billion to its Shareholders during second quarter 2025, comprised of $103 million of dividends and $1.5 billion of share repurchases

The Company completed its September 2024 $2.5 billion share repurchase authorization in second quarter 2025, repurchasing the remaining $1.5 billion through an accelerated share repurchase program. Final settlement of shares purchased through the second quarter 2025 accelerated share repurchase program is expected to occur by the end of July 2025.

The Company’s capital allocation framework supports its continued commitment to a strong and efficient investment-grade balance sheet. Moving forward, the Company will target liquidity of approximately $4.5 billion, comprised of cash and cash equivalents, short-term investments, and a revolving credit line, which was recently increased to $1.5 billion. The Company will target leverage^1,5 in the range of 1.0x to 2.5x adjusted debt to adjusted EBITDAR^1,5. The Company continues to have a large base of unencumbered aircraft and primarily aircraft-related assets with a net book value of approximately $16.6 billion. The Company’s Board of Directors recently approved a $2.0 billion share repurchase authorization expected to be completed over a period of up to two years, which is supported by this framework and expected ramp up in initiative benefit.

Supplemental Information:

The Company has provided a summary on progress against initiative development and detail on its full year 2025 EBIT² guidance on the Investor Relations website at https://www.southwestairlinesinvestorrelations.com. 

Conference Call:

The Company will discuss its second quarter 2025 results on a conference call at 12:30 p.m. Eastern Time on July 24, 2025. To listen to a live broadcast of the conference call, please go to
https://www.southwestairlinesinvestorrelations.com. 

Toulouse, France, 24 July 2025 – Avolon, a leading global aviation finance company, has placed an order for 90 Airbus aircraft, comprising 15 A330neo and 75 A321neo. This incremental order brings Avolon’s total to 79 A330neos and 264 A321neos.

Andy Cronin, Avolon CEO, commented, “This order demonstrates our strong confidence in the long-term demand for new aircraft. Our scale and balance sheet position us to support our airline customers’ expansion and replacement needs into the next decade. Both the A321neo and A330neo are in high demand, and we expect this to continue given the long-term growth trajectory for the aviation sector. We are delighted to be expanding and extending our long-term partnership with Airbus with this order.”

“Lessors are excellent barometers of the aircraft market, and we are grateful to Avolon for expanding its commitment for the A320 Family and A330neo, so soon after an earlier order two years ago. This endorsement illustrates the strong attractiveness to a wide variety of customers of these two aircraft, the most efficient in their category with the latest technologies embedded, covering the market space from domestic to regional to long haul routes. We value this partnership which has helped open new markets and broaden the customer base for both aircraft types”, said Benoît de Saint-Exupéry, Airbus EVP Sales of the Commercial Aircraft business.

Powered by the latest generation Rolls-Royce Trent 7000 engines, the A330-900 has a range of 7,200nm / 13,300 km non-stop and reduces fuel burn, CO 2 emissions and operating cost by 25% compared to the previous generation aircraft. The A330neo features the award-winning Airspace cabin, which offers passengers a unique experience, high level of comfort, ambience, and design. This includes more individual space, enlarged overhead bins, a new lighting system and access to the latest in-flight entertainment and connectivity systems.

The A321neo is the largest member of Airbus’ best-selling A320neo Family, offering unparalleled range and performance. By incorporating new generation engines and Sharklets, the A321neo brings a 50% noise reduction and more than 20% fuel savings and CO₂ reduction compared to previous generation single-aisle aircraft, while maximising passenger comfort in the widest single-aisle cabin in the sky.

As with all in-production aircraft, the A330neo and A321neo are able to operate with up to 50% Sustainable Aviation Fuel (SAF), with a target to increase to up to 100% SAF capability by 2030.