BlackBerry Q2 Profit Up, Air Canada Cuts Guidance After Strike

BlackBerry reports Q2 profit after loss last year, raises full‑year outlook

BlackBerry announced a return to profitability in its second quarter, reporting net income of US$13.3 million for the period ended Aug. 31, compared with a net loss of US$19.7 million in the same quarter last year. On a per‑share basis, the company posted US$0.02 in diluted earnings versus a loss of US$0.03 per share a year earlier.

On an adjusted basis, BlackBerry reported earnings of US$0.04 per share for the quarter, an improvement from break‑even a year ago. Total revenue rose to US$129.6 million, driven primarily by growth in its QNX unit, whose revenue increased to US$63.1 million from US$54.7 million a year earlier. Secure communications revenue declined to US$59.9 million from US$66.5 million, while licensing contributed US$6.6 million compared with US$5.0 million a year earlier.

Following the quarter, BlackBerry updated its outlook. The company now expects full‑year revenue between US$519 million and US$541 million, up from prior guidance of US$508 million to US$538 million. It also raised its forecast for adjusted earnings per share to a range of US$0.11 to US$0.15, higher than the previous projection of US$0.08 to US$0.10.

This stronger guidance reflects improved performance in key software segments and suggests management expects continued momentum through the remainder of the fiscal year. Investors watching BlackBerry will likely focus on the company’s ability to sustain growth in QNX and to narrow declines in its secure communications business.

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Air Canada cuts full‑year guidance after strike, estimates $375M impact

Air Canada lowered its full‑year guidance after estimating a US$375 million hit to operating income and adjusted EBITDA from a recent flight attendant strike. The Montreal‑based carrier said the disruption, which lasted three days and ended on Aug. 19, forced thousands of cancellations and reduced capacity while operations ramped back up.

The airline now expects adjusted EBITDA of US$2.9 billion to US$3.1 billion for the year, down from the prior range of US$3.2 billion to US$3.6 billion that was suspended in August. For the third quarter, Air Canada anticipates capacity will be about 2% lower than the same period last year, reflecting more than 3,200 cancelled flights. The company also expects operating income of roughly US$250 million to US$300 million for the quarter.

Air Canada attributed the US$375 million impact to three main factors: an estimated US$430 million revenue loss from refunds, customer compensation and reduced bookings; roughly US$90 million in incremental costs, including reimbursements and additional labour expenses; and about US$145 million in cost savings, mainly from lower fuel expenses, which partially offset the hit.

Labour talks continue to be a focus. Earlier this month, flight attendants overwhelmingly rejected a tentative wage deal; the wage portion will be referred to mediation, as previously agreed. That tentative agreement had included wage increases and a new pay structure for time worked while aircraft are on the ground, but the rejected offer means negotiations and potential disruptions remain a risk for the carrier and its investors.

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