Air Canada beats on quarterly profit versus year-ago loss
World
Air Canada beats on quarterly profit versus year-ago loss
(Reuters) - Air Canada (AC.TO) reported a better-than-expected quarterly profit on Friday compared with a year-ago loss and is adding capacity as the country's largest airline cashes in on strong international travel demand.
A rush by North American travelers to make up for lost time during the pandemic has bolstered earnings for legacy carriers, with international destinations enjoying especially high demand.
Montreal-based Air Canada said it expects to grow available seat mile capacity by about 11% in the third quarter compared with a year earlier.
North American carriers are facing pressure from higher labor costs, with pilots commanding steep pay increases in new contracts. Air Canada reported some relief in a 31.4% decrease in jet fuel prices during the second quarter.
For the quarter ended June 30, Air Canada reported adjusted net income of C$664 million ($493.97 million), or C$1.85 per diluted share.
Analysts on average had expected an adjusted net income of C$289.8 million or 68 Canadian cents a share according to data from Refinitiv.
For 2023, the carrier is now expecting costs per available seat mile (CASM) of about 0.5% to 1.5% above 2022 levels. In May, Air Canada said it expected CASM of about 0.5% to 2.5% below 2022 levels.
The company's quarterly operating revenue rose 36% to C$5.43 billion. Analysts on average were expecting revenues of C$5.1 billion according to Refinitiv data.
