Top News Today/Canada: Air Canada Expects Demand to Absorb Higher Fuel Costs

HEADLINES

Air Canada Expects Premium, International Demand to Absorb Higher Fuel Costs

Air Canada is betting that high-income travelers and strong international bookings will cushion the impact of higher fuel costs.

Canada's largest airline reinstated full-year guidance expectations, which it had pulled in April due to uncertainty stemming from geopolitical conflicts. Even though the new guidance is slightly lower, it comes on the back of higher quarterly revenue.

"Our outlook reflects the same themes that have supported our second quarter performance: constructive demand trends across the network, resilient premium and corporate demand, [and] continued progress on fuel," Chief Financial Officer John Di Bert said on call with investors.

Air Canada's stock rose 12.3% to C$30.61 on Wednesday.

Blackstone, La Caisse to Buy 25% of Air Canada's Aeroplan Loyalty Program

Apotex Swings to Loss But Sees Canadian GLP-1 Generics Gaining Market Share

Apotex Health swung to a quarterly loss as revenue slipped, but Canadian launches of generic Ozempic and Wegovy helped to offset an expiring cancer-drug license.

Apotex shares fell 3.6% to C$35.71.

The results mark the Toronto-based pharmaceutical and health company's first financial report since its initial public offering in June, one of Canada's largest pharmaceutical debuts.

Apotex is tapping into early Canadian patent lapses for Novo Nordisk's semaglutide to capture early generic GLP-1 market share, capitalizing on surging global demand for weight-loss and diabetes treatments while building a pipeline for future U.S. launches.

Apotex's U.S. Business Lags in Public Debut Amid Heightened Competition, Plant Pause

Apotex Sees Canadian Footprint as Shield Against Potential U.S. Generic Tariffs

Metro Accelerates Discount Pivot With 10-Store Conversion in Ontario

Canada's Metro is planning to convert some of its stores to discount chains, following the path of competitors, as shoppers continue to seek value while shopping for groceries.

The company, which also reported lower profit for the third quarter, said the overhaul is part of a move to tap into a broader structural shift across Canada's retail landscape where persistent food inflation, elevated interest rates and a cost-of-living squeeze have driven consumers away from conventional supermarkets and into low-cost banners.

The Montreal-based grocer said it is converting 10 of its Metro stores in Ontario into its Food Basics discount banner, and closing another store and satellite warehouse.

Maple Leaf Foods Profit Slips on Pork Spinoff, Poultry Sales Rise

Maple Leaf Foods posted higher second-quarter sales as strong poultry demand offset weakness in prepared foods, though profit fell following the divestiture of its pork business.

Shares fell 1.8% to C$27.46.

The Canadian consumer-packaged food and protein company posted a decrease in net income to C$40.8 million, or C$0.32 a share, compared with C$57.8 million, or C$0.46 a share, in the comparable quarter a year ago.

The decrease was largely due to income that was no longer reported following the spinoff of its pork business into a standalone business last year.

Hydro One Profit Rises as Rates, Peak Demand Drive Revenue Growth

Hydro One logged a higher profit in the second quarter, benefiting from higher rates in Ontario and peak demand.

The electricity transmission and distribution utility company posted a net income attributable to shareholders of C$370 million, or C$0.62 a share, up from C$327 million, or C$0.54 a share, in the comparable quarter a year ago.

Hydro One shares rose 1.3% to C$56.75.

Boyd Group Services Profit Falls on Higher Costs as Revenue Grows

Boyd Group Services surpassed $1 billion in quarterly sales for the first time in its history during the second quarter, though net profit fell as costs from its acquisition of Joe Hudson's Collision Centers weighed on performance.

Shares rose 2.3% to C$146.37.

The automotive collision and glass repair center operator posted net income of $1.3 million, or 5 cents a share, down from $5.4 million, or 25 cents a share, in the comparable quarter a year ago.

Sales rose 30% to $1.01 billion, surpassing the $1 billion mark for the first time in its history, but still just shy of analyst forecasts of $1.02 billion.

Titan Mining Profit Rises on Zinc Production, Prices

Titan Mining logged a higher second-quarter profit as the combination of increased zinc production, lower operating costs and higher metal prices drove revenue higher.

Shares rose 11.8% to C$3.69.

The miner posted net income of $5.4 million, or 6 cents a share, compared with $500,000, or zero a share, in the comparable quarter a year ago.

Building Permits Climbed 18.5% in June

Canadian building permits rose sharply in June, on demand to build institutional edifices like hospitals.

The total value of building permits issued in Canada rebounded by 18.5% to C$14.89 billion. Market expectations weren't immediately available. This marks a rebound after the previous month's 3% decline.

On a 12-month basis, the value of building permits rose 22.4%.

TALKING POINT

Ottawa Weighs Proposal on Auto Tariffs as it Presses U.S. for Reprieve, Sources Say

By Adrian Morrow and Marieke Walsh of the Globe and Mail

Canadian officials are weighing a proposal that would see Ottawa accept U.S. auto tariffs in exchange for a reduction on levies for vehicles compliant with USMCA, according to three sources on both sides of the border.

The proposal would also maintain an exemption for the value of American content in cars exported from Canada.

The Globe and Mail is not identifying the sources as they were not authorized to publicly discuss the top-secret talks.

One U.S. industry source with knowledge of the bilateral trade talks unfolding in Washington said this proposal has been discussed by Canadian and American negotiators. A Canadian industry source said Canada's negotiating team had talked about such a proposal but it was unclear whether they had yet pitched it to their U.S. counterparts. A provincial source said it had been talked about with Canadian industry.

Prime Minister Mark Carney has promised a deal that reduces U.S. President Donald Trump's tariffs on autos, steel, aluminum and forestry products. But so far, as The Globe has reported, the contours of an agreement for steel and aluminum have been clearer than one for autos. The two sides are aiming for a pact by Aug. 19, when Trump has threatened to impose tariffs of 50% on a further US$20 billion of Canadian exports.

Not only is the auto industry central to the bilateral trade relationship, but it is politically crucial: The United States wants Canadian premiers to stop their bans on American alcohol sales as part of the deal, which would require the agreement of Ontario Premier Doug Ford, whose province contains most of the country's auto industry.

Now, the first details of what a potential autos deal could look like are emerging.

Under the plan, according to the U.S. and Canadian industry sources, Trump's auto tariff, imposed under Section 232 of the Trade Expansion Act of 1962, would be reduced from its current rate of 25% on all Canadian auto exports that comply with the United States-Mexico-Canada Agreement.

In addition, all U.S. content in Canadian-made autos would continue to be excluded from the tariff calculation. If a Canadian-made car contains 50% U.S. content, for instance, the tariff is charged on only half the value of the car.

The Canadian industry source said Canadian officials had also discussed a proposal to have the tariffs apply only to any content in a vehicle that originated outside North America, which would have the effect of reducing the levies to a very small amount.

Two sources directly briefed on the talks said Canadian negotiators have been consulting with industry leaders to determine what concessions they could live with. A provincial source said that, in the case of the auto sector, the industry has said that it could survive a tariff of 10-15% if U.S. content in the car were not subject to the levy. Because of the two countries' integrated supply chains, the source pointed out, about 50% of a Canadian-made car originates in the United States.

In addition to the auto industry consultations, one source said, negotiators have also consulted with agriculture, steel and aluminum industry representatives.

In separate negotiations with Mexico, the U.S. has demanded a requirement that would oblige all vehicles manufactured in Mexico and exported to the U.S. to contain at least 50% U.S. content.

Gabriel Brunet, a spokesperson for Dominic LeBlanc, the minister responsible for Canada-U.S. trade, declined to comment on the auto proposal.

It was not immediately clear how receptive U.S. negotiators would be to the idea of a reduced auto tariff. The U.S. is also demanding that Canada drop all of its retaliatory tariffs on the U.S. auto sector.

The Canadian industry source said that the U.S. has so far appeared to hold back on negotiating auto tariffs because they are its most powerful point of leverage. The source, however, expected that autos would be part of the deal, even if an agreement comes at the last minute.

One Canadian official, however, was skeptical that such complicated issues could be sorted out by Aug. 19. This source said that it was more likely the Aug. 19 deal would simply be for Trump to hold off on his next round of tariffs while talks continue. This source said that no deal on 232 tariffs would be possible without auto 232 levies being part of it.

(MORE TO FOLLOW) Dow Jones Newswires

August 12, 2026 16:32 ET (20:32 GMT)