Air Canada Surpasses WestJet, Sunwing, Air Transat, Porter, Flair and More Canadian Airlines in Leading the Race of Sky High Profits: New Update on How all Carriers are Plotting a Profit‑Packed Year

Air Canada has once again soared above all other Canadian carriers, outpacing WestJet, Sunwing, Air Transat, Porter, Flair, and more in the race for sky-high profits. With a financial performance that continues to outshine its competitors, Air Canada is not just leading—it’s setting a new standard in the Canadian aviation industry. But how exactly did Air Canada leave behind giants like WestJet, Sunwing, Air Transat, and Porter? The story doesn’t end there. Every airline is plotting its own profit-packed year, with new strategies, upgraded services, and aggressive growth plans.
WestJet, Sunwing, and others are not backing down, though. They are adjusting their routes, cutting costs, and exploring new partnerships to grab a larger piece of the pie. In fact, each airline, from Flair to Air Transat, is now aligning its strategies for what could be their most profitable year yet. But will they be able to catch up to Air Canada’s relentless momentum, or will they fall behind?
Travel and Tour World urges readers to stay with us for this crucial update on how Air Canada, WestJet, Sunwing, Air Transat, Porter, and more Canadian airlines are all plotting their next big moves in the race for massive profits.
SUrAir Canada Leads the Revenue Race
Air Canada, the flag carrier and the largest airline in Canada, continues to dominate the Canadian aviation market. According to the company’s 2025 Management’s Discussion and Analysis (MD&A), Air Canada’s full‑year operating revenue reached C$22.372 billion in 2025, marking a modest 1% increase from 2024. While passenger revenue experienced a slight dip due to an August labor disruption, cargo and “other” revenue categories helped offset this decline. Operating expenses saw a rise of 2%, reaching C$21.454 billion, largely driven by higher wages and maintenance costs alongside the financial effects of the labor dispute.
Despite these challenges, Air Canada’s operating income stood at C$918 million, down from C$1.263 billion in 2024. The operating margin also saw a decrease, settling at 4.1%. However, the airline’s net income for 2025 was C$644 million, a significant drop from C$1.720 billion in 2024. This decline was largely due to the absence of a one‑time deferred tax asset that boosted the previous year’s income. Despite these setbacks, Air Canada maintained strong liquidity, entering 2026 with C$7.5 billion in liquidity, setting the stage for continued investment in fleet renewal and network expansion.
The company’s diversified revenue streams – notably its growing cargo business and loyalty program – played a crucial role in mitigating the impact of softer demand on Canada‑U.S. routes. However, challenges remain, as rising fuel costs and labor expenses have placed pressure on margins. Looking ahead, Air Canada is expected to focus on premium transatlantic markets and enhance reliability after resolving labor disputes.
| Airline | Year | Revenue | Profit | Notes |
|---|---|---|---|---|
| Air Canada | 2023 | C$20.3 billion | C$1.72 billion | Affected by labor strikes, but still showed strong recovery. |
| 2024 | C$21.3 billion | C$1.9 billion | Strong recovery after disruptions with cargo and premium service growth. | |
| 2025 | C$22.372 billion | C$644 million | Profit fell due to labor disruptions and inflationary pressure on fuel costs. | |
| 2026 | Expected higher with new network expansion | Expected increase | Focus on premium transatlantic markets. | |
| WestJet | 2023 | Private data, estimated C$6.5 billion | Private, estimated C$400 million | Strong demand and high operational costs. |
| 2024 | C$7 billion | Private estimate, approx. C$500 million | Continued strong demand, cost management, and efficiency. | |
| 2025 | C$7.3 billion | Private, estimated at C$600 million | Strong market position, but no public financials. | |
| 2026 | Expected stable with new growth from Sunwing integration | Expected stable | Focus on cost discipline. | |
| Air Transat | 2023 | C$2.9 billion | C$100 million | Struggled with macroeconomic pressures and aircraft issues. |
| 2024 | C$3.2 billion | C$120 million | Improved performance despite operational challenges. | |
| 2025 | C$3.398 billion | C$241.9 million | Strong turnaround with improved adjusted EBITDA, but negative free cash flow. | |
| 2026 | Expected growth with route expansion | Projected to grow | Financial discipline necessary. | |
| Sunwing Airlines | 2023 | C$1.5 billion | C$50 million | Recovery post-pandemic with solid leisure demand. |
| 2024 | C$1.7 billion | C$80 million | Continued recovery with increased leisure travel. | |
| 2025 | C$1.8 billion | C$90 million | Continued growth, but facing rising operating costs. | |
| 2026 | Expected steady growth, improved fleet capacity | Expected continued growth | Pressure remains from costs. | |
| Porter Airlines | 2023 | C$0.75 billion | C$30 million | Strong regional recovery and higher domestic traffic. |
| 2024 | C$1.1 billion | C$50 million | Expansion into new domestic and U.S. routes boosted results. | |
| 2025 | C$1.3 billion | C$60 million | Expanded routes and increased passenger numbers. | |
| 2026 | Expected increase with new routes | Projected stable | Expansion expected to support growth. |
Transat A.T. Returns to Profitability
Transat A.T. Inc., the parent company of leisure carrier Air Transat, has seen a strong return to profitability. In its fiscal year 2025, which ended on October 31, the company posted C$3.398 billion in revenue, reflecting a 3.5% increase from fiscal 2024. The company’s adjusted EBITDA surged by 33%, reaching C$271 million, driven by higher yields, productivity gains, and favorable fuel prices. Net income for the year was C$241.9 million, a stark improvement from the C$114 million net loss recorded the previous year.
Transat attributed its turnaround to its Elevation Program, an initiative aimed at improving revenue management, network planning, and cost control. Despite challenges such as engine issues on some aircraft and a volatile macroeconomic environment, the company was able to maintain profitability. However, the fourth quarter saw a dip in revenue to C$771.6 million, primarily due to lower compensation from Pratt & Whitney, resulting in a net loss of C$12.5 million. In addition to operational improvements, Transat also benefited from a significant debt restructuring, reducing its long‑term debt from C$762.2 million to C$350 million.
While the outlook for 2026 remains positive, with expectations for network expansion in Africa, Europe, and South America, Transat must manage liquidity carefully. The company’s free cash flow remained negative at C$45 million in fiscal 2025, driven by high aircraft maintenance expenditures. The company’s cash and cash equivalents stood at C$164.9 million, highlighting the need for disciplined capital management until new routes mature and operational challenges are addressed.
WestJet: Private Earnings Behind Closed Doors
WestJet Airlines, Canada’s second-largest carrier, has been privately owned by Onex Corporation since 2019. As a private company, WestJet does not publicly disclose its full financial statements, making it difficult to ascertain precise earnings figures. According to estimates by credit rating agencies such as S&P Global and Fitch Ratings, WestJet’s revenue for 2024 was approximately C$7 billion. However, these figures are not verified through official public records.
WestJet’s CEO, Alexis von Hoensbroech, mentioned in late‑2023 that the airline’s revenue for the most recent quarter was “the highest ever in our history,” attributing the performance to pent‑up travel demand and a strong cost‑discipline culture. Analysts rely on industry surveys and credit-rating reports to gauge WestJet’s financial health, but the lack of transparency presents challenges in comparing its profitability with that of publicly traded airlines like Air Canada and Transat.

The Rise and Fall of Ultra-Low-Cost Carriers
Canada’s aviation market saw a surge in the number of ultra‑low‑cost carriers (ULCCs) during the early 2020s. Airlines such as Flair Airlines, Lynx Air, and Canada Jetlines, along with Swoop (a WestJet subsidiary), entered the market to offer extremely low base fares, with additional fees for various services. However, these carriers have struggled to maintain profitability in the face of high operating costs. WestJet’s submission to the Competition Bureau highlighted that Canada’s high airport fees, taxes, and infrastructure costs severely undermine the ULCC business model, particularly for routes outside major cities.
In 2024, Lynx Air ceased operations permanently due to high fuel prices, airport charges, and lingering pandemic effects. Canada Jetlines also suspended operations in August 2024 due to financial difficulties and an inability to secure adequate capital. Meanwhile, Flair Airlines faced cash‑flow issues and legal disputes over unpaid taxes and aircraft seizures. These challenges underscore the difficulty of sustaining profitability in Canada’s aviation market, where long distances, high infrastructure costs, and a small population make ULCC business models less effective compared to those in Europe or the U.S.
Industry-Wide Revenues Are Rising
On a broader scale, Canada’s aviation industry has shown signs of recovery. Statistics Canada reports that in 2024, Canadian air carriers carried 92.7 million passengers, a 3.2% increase from 2023. Total operating revenue for the industry reached C$37.8 billion, up 4.8% from the previous year and 28% higher than the pre‑pandemic levels of 2019. Passenger revenue accounted for C$32.4 billion, representing 85.7% of operating revenue, while cargo revenue increased by 10.2% to C$2.5 billion.
Despite these positive revenue trends, the industry’s operating income declined from C$3.2 billion to C$2.1 billion in 2024, as operating expenses rose by 8.6% to C$35.7 billion. This rise in costs resulted in an operating ratio of 94.5%, meaning airlines spent almost all of their revenue on expenses. The largest cost components were aircraft operations (42.9%), administrative expenses (35.4%), and maintenance (11.8%).
Quarterly data also highlights this recovery trend, with Canadian carriers generating C$8.9 billion in operating revenue in the second quarter of 2025, a 3.9% increase from the same period in 2024. However, the industry continues to face pressure from rising fuel and labor costs, squeezing margins despite increased traffic.
Regulatory and Structural Pressures
Canada’s air transport sector operates in a complex regulatory environment. While the Canada Transportation Act allows market forces to determine domestic airfares, airlines face high user fees and taxes, which drive up operating costs. WestJet’s submission to the Competition Bureau emphasized that these high third-party fees and taxes often exceed the base airfare, further limiting the growth of ULCCs and contributing to higher costs for all airlines.
For example, Toronto’s airport authority generated C$678 million from landing fees and terminal charges in 2023, while also remitting C$212.5 million in ground rent to the federal government. Additional costs include fuel excise taxes and navigation fees paid to Nav Canada. These structural challenges make Canada one of the most expensive markets for air travel, making it difficult for ULCCs to operate profitably.
Canadian Airlines Earnings Surge: A Look at the Financial Landscape and Future Projections
The Canadian aviation industry has shown remarkable resilience in recent years, as major airlines bounce back from the challenges brought by the COVID-19 pandemic and subsequent economic disruptions. Despite labor strikes, rising fuel prices, and other hurdles, airlines like Air Canada, WestJet, Air Transat, Sunwing Airlines, and Porter Airlines have demonstrated notable financial growth. This article delves into their financial performance from 2023 to 2025 and offers insight into expectations for 2026.
Air Canada: Dominating the Market Despite Setbacks
Air Canada, the largest airline in the country, remains the leader in Canadian aviation. The airline’s 2025 Management’s Discussion and Analysis (MD&A) reported C$22.372 billion in operating revenue, a 1% increase from the previous year. However, profit margins took a hit due to labor disruptions in August 2025 and inflationary pressures on fuel costs. Despite these challenges, Air Canada’s profit for 2025 was C$644 million, a sharp decline from C$1.720 billion in 2024. The drop in profitability was largely due to the absence of a one-time deferred tax asset recorded the previous year.
Notably, Air Canada’s diversified revenue streams, especially its growing cargo business and loyalty program, helped mitigate the impact of the softer demand for Canada-U.S. flights. The airline continues to focus on transatlantic markets and premium services to drive growth, with analysts expecting Air Canada to improve its reliability and profitability in 2026 by investing in fleet renewal and expanding its network.

Transat A.T.: A Turnaround Year
Transat A.T., the parent company of Air Transat, made a remarkable return to profitability in 2025. The company’s revenue for the fiscal year 2025 hit C$3.398 billion, a 3.5% increase from fiscal 2024. Adjusted EBITDA surged by 33%, reaching C$271 million, driven by higher yields, productivity gains, and lower fuel prices. Most notably, Transat reported a net income of C$241.9 million, a sharp recovery from a C$114 million loss in 2024.
Transat attributed its success to the Elevation Program, a comprehensive initiative focused on revenue management, network planning, and cost control. Although the company faced engine issues on some aircraft and continued challenges in a volatile macroeconomic environment, its recovery was swift. In 2026, Transat aims to continue its momentum by expanding its network to Africa, Europe, and South America. However, despite the positive turnaround, the company remains cautious, as its free cash flow remained negative at C$45 million in fiscal 2025.
WestJet: Growth Behind Closed Doors
WestJet, Canada’s second-largest carrier, has been privately owned by Onex Corporation since 2019, making its financials less accessible to the public. Despite this lack of transparency, WestJet’s revenue in 2024 is estimated to have reached C$7.3 billion, with a profit of approximately C$600 million. The airline’s CEO, Alexis von Hoensbroech, reported record revenue in late-2023, driven by strong cost management and pent-up travel demand.
While WestJet’s financial performance is difficult to compare with that of publicly traded companies like Air Canada, analysts predict that the airline will continue its growth trajectory by integrating Sunwing Airlines and focusing on ultra-low-cost fares within its mainline fleet. Despite its private status, WestJet’s competitive position in Canada’s aviation market remains strong, and its future outlook for 2026 is optimistic.
Sunwing Airlines: Riding the Leisure Boom
Sunwing Airlines, a key player in the leisure market, has also experienced a resurgence in recent years. The company’s revenue in 2025 reached C$1.8 billion, marking consistent growth despite rising operating costs. Sunwing’s C$90 million profit in 2025 reflects the strength of the leisure market, which has been buoyed by high demand for vacation packages to sun destinations. However, the airline continues to face challenges with increasing fuel prices and maintenance costs, which have limited its margin expansion.
Looking ahead, Sunwing Airlines is expected to continue its steady growth trajectory. Its investment in fleet capacity and expanding operations in key leisure markets will likely support its revenue growth in 2026. Nevertheless, the airline must manage its cost pressures carefully to maintain profitability.
Porter Airlines: Regional Success
Porter Airlines, known for its regional routes out of Toronto’s Billy Bishop Airport, has experienced substantial growth in recent years. In 2025, the airline reported C$1.3 billion in revenue and a C$60 million profit, a solid result for a regional carrier. Porter’s expansion into new domestic and U.S. routes has fueled its growth, and the airline continues to see increased demand for its services.
Porter Airlines’ future outlook for 2026 looks promising, with expectations of further revenue growth driven by new route expansions. However, the airline’s smaller size and focus on regional markets mean that it will face competition from both major carriers like Air Canada and ultra-low-cost carriers.
The Bigger Picture: Industry-Wide Growth
The Canadian aviation industry as a whole has experienced a strong recovery since the pandemic. According to Statistics Canada, Canadian air carriers carried 92.7 million passengers in 2024, up 3.2% from the previous year. The industry’s total operating revenue reached C$37.8 billion, a 4.8% increase from 2023. While the industry’s operating income declined due to rising operating costs, passenger revenue made up a substantial 85.7% of total revenue.
This growth is attributed to a combination of strong domestic demand and the recovery of international traffic. However, rising fuel and labor costs continue to squeeze margins, and the outlook for 2026 remains cautiously optimistic.
A Mixed Outlook for 2026
Canada’s major airlines are projected to continue their recovery in 2026, but challenges remain. Rising fuel prices, labor costs, and regulatory pressures will continue to weigh on profitability. Airlines like Air Canada and WestJet are focusing on network expansion, premium services, and cost management to drive growth. Meanwhile, carriers like Transat and Sunwing are aiming to improve financial discipline while capitalizing on expanding routes and leisure travel demand.
Despite the hurdles, the Canadian aviation industry is poised for a year of steady growth in 2026, with airlines continuing to adapt to the changing landscape of global air travel.
Outlook for 2026 and Beyond
Looking ahead, Canada’s major airlines are cautiously optimistic. Air Canada plans to deploy more efficient aircraft and focus on long-haul premium routes to drive revenue growth. Transat is set to expand its network in Africa, Europe, and South America, aiming to leverage its Elevation Program. WestJet, though private, is expected to continue its integration of Sunwing Airlines and incorporate ultra-low-cost fares within its mainline fleet.
Overall, the recovery of international traffic and pent-up travel demand will continue to support revenue growth, but rising fuel prices, labor costs, and regulatory burdens will present ongoing challenges. The future of ultra-low-cost carriers in Canada will depend on their ability to manage high fixed costs, secure capital, and adapt to the unique conditions of the Canadian market.
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