OTTAWA, ON, April 9, 2026 /CNW/ - NAV CANADA today released its financial results for the three and six months ended February 28, 2026.
In the second quarter of fiscal 2026, NAV CANADA maintained financial stability while continuing to advance investments in the infrastructure and systems that support Canada's air navigation system. Air traffic levels moderated during the quarter, primarily due to severe weather disruptions that impacted aviation system capacity. At the same time, the Company continued to progress its modernization agenda, directing resources toward priority initiatives that strengthen service delivery and long‑term operational resilience. Looking ahead, NAV CANADA is monitoring emerging geopolitical developments and higher fuel costs, which may place additional pressure on the aviation industry and could influence future traffic levels and operating costs, depending on their duration and severity.
"We are making deliberate investments in the systems and infrastructure that will define the future of air navigation in Canada," said Mark Cooper, President and CEO. "This quarter reflects the balance we're maintaining: strengthening service delivery today while building the capacity and resilience our industry partners and customers will need in the years ahead."
In the second quarter of fiscal 2026, the Company saw an increase in air traffic levels, as measured in weighted charging units(1), of 1.5% on a year over year basis. The Company's revenue was $405 million for the second quarter of fiscal 2026, which is $9 million higher than the same period in fiscal 2025, due to higher weighted charging unit volumes and the increase in customer service charge rates effective January 1, 2025.
The Company ended the quarter with strong liquidity reserves, including a cash balance of $393 million. This liquidity position provides flexibility to manage through periods of air traffic volatility and cost pressures, while continuing to fund critical operations and infrastructure investments. Negative free cash flow of $71 million was generated in the second quarter of fiscal 2026, compared to $69 million in the same period in fiscal 2025, reflecting increased investment in the Company's infrastructure.
The rate stabilization account shortfall balance increased by $60 million in the second quarter of fiscal 2026. As of February 28, 2026, the shortfall balance was $89 million and is expected to be recovered from customers through future service charges.
Associated Links
The Company's Financial Statements and Management's Discussion and Analysis for the three and six months ended February 28, 2026 can be found at:
Financial Statements
Management's Discussion and Analysis
About NAV CANADA
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.
The Company is internationally recognized for its safety record and technology innovation.
- 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.
- 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 Aireon Holdings LLC, equity related investments, principal payments of lease liabilities and income tax payments. 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.
SOURCE NAV CANADA
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