Air Canada suspended its 2026 forecast, as higher jet fuel prices due to the war in Iran created uncertainty over costs, even as travel demand remained robust, reports Reuters.

The carrier beat first-quarter revenue estimates and reported a smaller-than-expected adjusted loss, helped by resilient demand, particularly from premium customers with the ability to absorb higher fares.

Canada’s largest carrier will also pause share buybacks in the near term and review the decision in the second half of the year.

Fuel, which typically accounts for about a quarter of operating costs, has almost doubled in price since the conflict started in late February, leading carriers to trim capacity, raise fares and charge higher fees for services like checked baggage.
Air Canada is also trimming less profitable routes and reducing the number of flights where demand is weaker.