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

New $1.8-million CT scanner in operation at Chilliwack General Hospital

Fraser Valley Health Care Foundation steps up to raise $1 million, more than half the scanner cost

WorkBC Chilliwack officially opens doors to its new location

The local centre opened in April and since then hundreds of clients transitioned to employment

OPINION: A brief look at the present and past of Chilliwack federal elections

For those who are new to town, or just haven’t been paying attention

Missing man last seen in Chilliwack Sept. 7

Friends concerned for well-being of 44-year-old Jean Pierre Baril

VIDEO: Find Me My Furever Home – Mars and Jupiter at the Chilliwack SPCA

These two very social guinea pigs are up for adoption at the Chilliwack SPCA

Vancouver’s Tristan Connelly shocks the UFC world

Late replacement upsets big favourite Pereira, main event sees Gaethje stop Cerrone in round one

UVic president offers condolences after two students killed in bus crash

‘We also grieve with those closest to these members of our campus community,’ Cassels says

Coming Home: B.C. fire chief and disaster dog return from hurricane-ravaged Bahamas

The pair spent roughly one week on Great Abaco Island assisting in relief efforts

Newcomer Ferland lines up with sniper Pettersson as Vancouver Canucks camp opens

Ferland provides more depth and a scoring threat up front, Pettersson says

Intelligence official charged seemed to be ‘exemplar of discretion’: UBC professor

Professor Paul Evans says he served on Cameron Ortis’s doctoral dissertation committee

B.C. company gets licence to test psychedelic drugs for therapy treatment

Salvation Botanicals interested in manufacturing, testing and research and development

B.C. police watchdog to investigate man’s head injury during RCMP arrest

Suspect fled on a bicycle and fell off when an officer attempted to stop him

‘A real shame’: B.C. MLA says factors behind Tolko mill closing should have been caught

Kelowna-Mission MLA Steve Thomson said the industry is in bad shape across the province

Most Read