Air Canada sees strong revenue growth in 2028 due to robust demand for leisure travel

Air Canada AC-T said Tuesday it is aiming for a 36 percent jump in its operating earnings in 2028 from the current year, riding a wave of strong demand for leisure travel across domestic and international routes.

Airlines worldwide are optimistic about the future of air travel, fueled by a post-pandemic surge as travelers shift their priorities from goods to experiences.

Air Canada also forecasts its 2025 adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the range of $3.4 billion to $3.8 billion, compared with analysts’ estimates of $3.63 billion, according to data compiled by LSEG.

“Our strategy, which builds on and leverages the unique strengths developed over the past decade, is to scale even higher with consistent margin expansion and structural cash generation while maintaining a strong balance sheet and responsible risk profile,” said CEO Michael Rousseau.

It also plans to expand its network. Earlier this year, the Montreal-based carrier revealed plans to increase flights to China and add capacity to other Asia-Pacific routes.

The Canadian flag carrier is aiming for operating income of about $30 billion by 2028, with an adjusted core profit margin of 17 percent or more.

It expects to report operating revenue of approximately $22 billion this year, with a core profit margin of about 16 percent.

“We believe we are very well positioned to execute our long-term plans,” Rousseau added.

The airline is expected to provide more details about its future plans at its investor day scheduled for Tuesday.