{
  "id": 677206,
  "title": "Air Canada says fuel costs spiked 49% from last year, with travel demand up",
  "url": "https://urgent.news/2026/08/12/air-canada-says-fuel-costs-spiked-49-from-last-year-with-travel",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-12T15:48:09.000Z",
  "source": {
    "name": "Global News",
    "slug": "global-news",
    "url": "https://globalnews.ca/news/12018267/air-canada-jet-fuel-costs/"
  },
  "original_language": "en",
  "account": "Air Canada disclosed a significant rise in fuel costs, which increased by 49% compared to the previous year. Despite this, the company reported a substantial boost in travel demand, leading to overall revenue growth. In its second quarter earnings report, Air Canada revealed that its operating revenues soared 11% compared to the same period last year, reaching $6.266 billion. This growth was driven by strong demand across its extensive network, according to Michael Rousseau, the airline's president and CEO.\n\nThe financial report also highlighted that Air Canada's fuel expenses amounted to nearly $1.7 billion in the three months leading up to June 30, 2026, a considerable increase from $1.15 billion a year earlier. These soaring fuel prices are primarily attributed to the geopolitical tensions sparked by the Iran war, which began in late February and resulted in heightened global oil prices due to restricted shipping in the Strait of Hormuz. This critical shipping lane typically handles about a fifth of the world's crude oil supply.\n\nAir Canada's financial forecast for the full year was adjusted downward to adjusted earnings before taxes and other costs of $2.9 to $3.2 billion, compared to the previous forecast of $3.35 billion to $3.75 billion. This adjustment is directly linked to the increased fuel prices, which forced the company to purchase fuel at higher rates than the fares it sold to passengers.\n\nAmid these challenges, Air Canada announced plans to sell a quarter of its Aeroplan loyalty program to Blackstone and La Caisse for $2.5 billion. The company retains 75% ownership, maintaining complete control over the program's operations, partnerships, and member experience. CEO Rousseau emphasized that Aeroplan would remain a core element of Air Canada's strategy, with no changes in how members earn or redeem points or any other program aspects due to the transaction. This strategic move is intended to bolster the company's financial position and improve its prospects for an investment-grade rating in the future.",
  "summary": "Air Canada said it spent 49 per cent more on aircraft fuel compared to a year ago while demand for air travel boosted its revenue, and it plans to sell a quarter stake of Aeroplan.",
  "key_points": [
    "Fuel costs increased by 49% year-over-year",
    "Travel demand rose, revenue grew 11%",
    "Air Canada to sell Aeroplan to Blackstone for $2.5B"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Global News",
        "title": "Air Canada says fuel costs spiked 49% from last year, with travel demand up",
        "url": "https://urgent.news/2026/08/12/air-canada-says-fuel-costs-spiked-49-from-last-year-with-travel-677841",
        "published": "2026-08-12T15:48:09.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}