An Air Canada flight makes its final approach as it lands in Ottawa on July 3, 2019. Air Canada says it had a $343 million net profit in the second quarter, a turnaround from the loss of $102 million that the airline experienced during the comparable period last year. THE CANADIAN PRESS/Adrian Wyld

Air Canada adjusted earnings soar above estimate, revenue up in each segment

Boeing 737 MAX aircraft will be grounded till 2020

Air Canada’s adjusted earnings for the second quarter soared above analyst estimates as the airline contained costs associated with the grounding of Boeing 737 MAX aircraft and expanded revenue across market segments.

However, the Montreal-based company said the impact of the grounding — now expected to last into January 2020 — will have more of an impact on the third quarter, often the busiest travel period for Canadian airlines.

Air Canada said its third-quarter projected capacity — the number of passengers it can fly — is expected to decline approximately two per cent from the third quarter of 2018. Originally it was to increase three per cent.

The Montreal-based airline also reported Tuesday that its adjusted earnings were 88 cents per diluted share during the three months ended June 30, up from 47 cents a year earlier.

Second-quarter revenue for the Montreal-based airline was $4.76 billion, up $424 million from the same time last year.

Analysts had estimated adjusted earnings of 76 cents per share and $4.71 billion of revenue, according to financial markets data firm Refinitiv.

Net profit was $343 million, or $1.26 per diluted share, a turnaround from the loss of $102 million or 37 cents per share that the airline experienced during the comparable period last year.

Air Canada chief executive Calin Rovinescu said the Boeing 737 Max grounding did have a negative impact on year-over-year growth of second-quarter earnings before interest, taxes, depreciation and amortization, but praised employees for creative solutions.

“These are impressive results with revenue growth in each market segment and system passenger revenues up 10.7 per cent on capacity growth of 2.3 per cent,” Rovinescu said in a statement.

He also noted that Air Canada had concluded a definitive agreement to acquire smaller rival Transat AT Inc., a deal that requires further approvals.

ALSO READ: Air Canada reviewing how crew left sleeping passenger on parked plane

ALSO READ: Legal challenge to air passenger rights bill should be dismissed: Attorney general

The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

79 calls to Trail RCMP over August long

Break & enters, mental health calls, and public intoxication are included in the Trail RCMP summary

International Cat Day today #meow

On International Cat Day please share photos of your love-able felines

Trail Parks and Rec opens TALC Fitness Centre

Trail Parks and Rec to open Trail Aquatic Centre’s gym on Tuesday, pool to open in mid-September

Nelson’s SMRT1 Technologies to provide vending tech to Vancouver company

UpMeals will launch 22 machines across Canada using SMRT1’s personalized machines

July Kootenay real estate sales at record high

Sales and prices of Kootenay real estate on the rise

53 new COVID-19 cases, no new deaths cap off week of high infection rates in B.C.

Roughly 1,500 people are self-isolating because they either have COVID-19 or have been exposed to it

Moving on: Tanev scores 11 seconds into OT as Canucks oust Wild

Vancouver beats Minnesota 5-4 to move into first round of NHL playoffs

Gene editing debate takes root with organic broccoli, new UBC research shows

Broccoli is one of the best-known vegetables with origins in this scientific haze

VIDEO: U.S. Air Force pilot does fly-by for B.C. son amid COVID border separation

Sky-high father-son visit plays out over White Rock Pier

3 Vancouver police officers test positive for COVID after responding to large party

Union president says other officers are self-isolating due to possible exposure

New mothers with COVID-19 should still breastfeed: Canada’s top doctor

Dr. Theresa Tam made the recommendation during World Breastfeeding Awareness Week

Collapse of Nunavut ice shelf ‘like losing a good friend:’ glaciologist

The ice shelf on the northwestern edge of Ellesmere Island has shrunk 43 per cent

Creston Valley Hospital addresses COVID-19 rumours regarding farms

‘Not one seasonal worker in Creston has tested positive for COVID-19,’ said Dr. Nerine Kleinhans

B.C. wildfire crews have battled 111 blazes in the last seven days

Twenty-nine fires remain active, as of Friday (Aug 7)

Most Read