Air Canada has reinstated its annual core profit target, though the revised goal is lower than the previously suspended guidance, as the carrier anticipates persistently high jet fuel prices due to potential oil supply disruptions from the conflict involving the US, Israel, and Iran.

Canada's largest airline had paused its earnings outlook in April, following Iran's blockade of the Strait of Hormuz—a waterway handling one-fifth of global oil shipments—which created uncertainty over jet fuel supply and pricing. The company now projects adjusted core profit for 2026 to range between 2.9 billion Canadian dollars ($2.08 billion) and 3.2 billion Canadian dollars. Before suspending its outlook, the forecast was set at 3.35 billion to 3.75 billion Canadian dollars.

Jet fuel typically accounts for about a quarter of an airline's operating costs, making carriers vulnerable to sudden price spikes or sharp volatility. Air Canada noted that severe disruptions to international maritime trade routes have further intensified pressure on jet fuel prices. Fuel expenses for the second quarter surged 49% compared to the same period last year.