Fengye Bank: Air Canada's profits and free cash flow expectations exceeded expectations.

Fengye Bank stated that due to stronger-than-expected demand trends in both passenger and freight business, Air Canada's fourth-quarter performance was solid and better than expected. Analyst Konark Gupta wrote in a report that the expectations for EBITDA and free cash flow in 2026 also exceeded expectations, but he pointed out that the free cash flow outlook "includes proceeds of $1 billion from sale and leaseback, while our assumption is $600 million, meanwhile, AC has lowered its 2026 capital expenditure forecast by $200 million." However, even after adjusting for this difference, Gupta stated that the free cash flow expectations are still "estimated to be $160 million higher than our expectations," thanks to resilient demand and cost control.