News

In the first quarter of fiscal 2026, NAV CANADA delivered solid financial results in a dynamic aviation environment, while maintaining a strong focus on safety, operational resilience, and disciplined investment in people and infrastructure. As air traffic demand remained relatively strong, the Company continued to advance its long-term modernization agenda while managing costs and risks with care.

NAV CANADA maintained strong liquidity, positioning the Company to support increased capital investment in the year ahead.

“These results reflect a balanced approach to managing today’s operations while investing for tomorrow,” said Mark Cooper, President and CEO. “Continued investment in staffing, training capacity and critical infrastructure is strengthening the foundation for service delivery while supporting future operations.”

In the first quarter of fiscal 2026, the Company saw an increase in air traffic levels, as measured in weighted charging units⁽¹⁾, of 2.3% on a year over year basis. The Company’s revenue was $475 million for the first quarter of fiscal 2026, which is $26 million higher than the same period in fiscal 2025, due to the increase in customer service charge rates effective January 1, 2025 and higher weighted charging unit volumes.

The Company ended the quarter with strong liquidity reserves, including a cash balance of $750 million. Positive free cash flow⁽²⁾ of $7 million was generated in the first quarter of fiscal 2026, as compared to $83 million in the same period in fiscal 2025, reflecting our increased investment in staffing, training capacity and our infrastructure.

The rate stabilization account shortfall balance reduced by $31 million in the first quarter of fiscal 2026. As of November 30, 2025, the shortfall balance was $29 million and is expected to be recovered from customers through future service charges.

1. Weighted charging units represent a traffic measure that reflects the number of billable flights, aircraft size and distance flown in Canadian airspace and is the basis for movement-based service charges, which comprise the vast majority of the Company’s revenue.
2. Free cash flow is a non-GAAP financial measure used by the Company to enhance the overall understanding of its financial and operating performance. Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines free cash flow as cash generated from operations, less capital expenditures (net of government grants received), investments in regulatory assets, investments in Aireon LLC and equity related investments and principal payment of lease liabilities. Management places importance on this indicator as it assists in measuring the impact of its investment program on the Company’s financial resources and provides users with a more stable indication of the Company’s ability to meet its debt obligations and continue to invest in the air navigation system.

This press release contains certain forward-looking statements that are subject to important risks and uncertainties. Actual results may differ materially from the results indicated in these statements for a number of reasons. NAV CANADA disclaims any intention to update any forward-looking statements.