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.

Just Posted

Firefighters respond to two hay barns on fire near Jaffray

Emergency personnel remain on scene throughout Wednesday to put out hot spots

Dynamiters prepare for main camp

The Kimberley Dynamiters will host their main camp on Aug. 30 - Sept. 1 at the Civic Centre

UPDATED: MV Balfour ferry returns to service

The 65-year-old ferry had been out of action for a month

Kiara Ker earns bronze at U17 National Basketball Championships

This was the third time the local basketball player represented Team BC at the national level

Vehicle stolen from downtown Fernie found torched at transfer station

RCMP are seeking witnesses to the theft of a yellow 2002 Subaru… Continue reading

VIDEO: Facebook rolls out tool to block off-Facebook data gathering

CEO Mark Zuckerberg announced the “clear history” feature more than a year ago

Catholic church buys $7.5M equestrian facility in B.C., plans ‘agri-retreat’ centre

Church hopes to grow crops, host students and others on Bradner property

New regulations require training for B.C. drug recovery homes

Inspections, standards replace ‘wild west,’ Minister Judy Darcy says

Pembina buying Kinder Morgan Canada and U.S. portion of Cochin pipeline

The deal also includes an Edmonton storage and terminal business and Vancouver Wharves

Trans Mountain gives contractors 30 days to get workers, supplies ready for pipeline

Crown corporation believes the expansion project could be in service by mid-2022

66% of B.C. residents want opt-out system for organ donation: poll

Support was lowest in Ontario and the Atlantic provinces

B.C. rainbow crosswalk covered in mysterious black substance

Black substance spilled intentionally near Vancouver Island school and difficult to remove

RCMP originally planned to arrest Meng Wanzhou on plane, defence lawyers say

The allegations have not been proven in court. Meng was arrested Dec. 1 at Vancouver airport at the behest of the U.S.

Bodies of two missing Surrey men found near Ashcroft

Ryan Provencher and Richard Scurr have been missing since July 17

Most Read