Air Canada resumed its annual core profit target on Tuesday, but the target level was lower than previously suspended expectations, as the company expected that the interruption in oil supply caused by the US and Israel war against Iran would cause aviation fuel prices to remain high. Canada's largest airline suspended earnings forecasts in April, when Iran blocked the Strait of Hormuz — which is responsible for one-fifth of the world's oil traffic — causing uncertainty about aviation fuel supply and prices. The company expects adjusted core profit to be between $2.9 billion and $3.2 billion in 2026. Prior to the suspension of the outlook, the original estimate was between $3.35 billion and $3.75 billion. Aviation fuel usually accounts for about a quarter of an airline's operating costs, which makes airlines vulnerable to sudden spikes or drastic fluctuations in fuel prices. Air Canada said that serious disruptions in international maritime trade routes have further increased the pressure on aviation fuel prices. Fuel spending in the second quarter surged 49% from the same period last year.

Air Canada resumed its annual core profit target on Tuesday, but the target level was lower than previously suspended expectations, as the company expected that the interruption in oil supply caused by the US and Israel war against Iran would cause aviation fuel prices to remain high. Canada's largest airline suspended earnings forecasts in April, when Iran blocked the Strait of Hormuz — which is responsible for one-fifth of the world's oil traffic — causing uncertainty about aviation fuel supply and prices. The company expects adjusted core profit to be between $2.9 billion and $3.2 billion in 2026. Prior to the suspension of the outlook, the original estimate was between $3.35 billion and $3.75 billion. Aviation fuel usually accounts for about a quarter of an airline's operating costs, which makes airlines vulnerable to sudden spikes or drastic fluctuations in fuel prices. Air Canada said that serious disruptions in international maritime trade routes have further increased the pressure on aviation fuel prices. Fuel spending in the second quarter surged 49% from the same period last year.