A compound engine assembly including an air conduit having an inlet in fluid communication with ambient air around the compound engine assembly, a compressor having an inlet in fluid communication with the air conduit, an engine core including at least one rotary internal combustion engine and having an inlet in fluid communication with an outlet of the compressor, a turbine section having an inlet in fluid communication with an outlet of the engine core and configured to compound power with the engine core; and at least one heat exchanger in fluid communication with the air conduit, each heat exchanger configured to circulate a fluid of the engine assembly in heat exchange relationship with an airflow from the air conduit circulating therethrough. A method of supplying air to a compound engine assembly is also discussed.