Air Canada resumes annual forecast and points out that fluctuations in fuel prices still pose risks.

Air Canada reinstated its annual core profit forecast on Tuesday, but the target level is lower than the previous expectations that were put on hold, as the company anticipates that oil supply disruptions caused by the war between the U.S. and Israel and Iran will keep aviation fuel prices persistently high. The largest airline in Canada had suspended its earnings outlook in April, when Iran blocked the Strait of Hormuz a waterway that accounts for one-fifth of global oil transportleading to uncertainty in aviation fuel supply and pricing. The company projects that its adjusted core profit for 2026 will be between CAD 2.9 billion and CAD 3.2 billion. Before suspending the outlook, the original forecast was between CAD 3.35 billion and CAD 3.75 billion. Aviation fuel typically accounts for about a quarter of an airline's operating costs, making airlines vulnerable to sudden spikes or severe fluctuations in fuel prices. Air Canada stated that severe disruptions in international shipping trade routes have further intensified the pressure on aviation fuel prices. Fuel expenses in the second quarter soared 49% compared to the same period last year.