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

VIDEO: Former Abbotsford resident giving away $1,000

Langley native Alex Johnson creates elaborate treasure hunt to give away cash

Missing Richmond man last seen in Chilliwack

Shawn Johnson last seen on June 30 on Main Street

Double homicide investigation leads Vancouver police to Eagle Landing

A VPD forensics unit was in Chilliwack Saturday collecting evidence connected to East Van murders

Abbotsford man wins $1 million in Lotto 6/49 draw

Kenneth Giffen wins prize after deciding to stop in Agassiz gas station after fishing trip

UPDATE: Abbotsford shooting victim was alleged ‘crime boss,’ according to court documents

Jazzy Sran, 43, was believed to have been smuggling cocaine across the border

B.C. records 62 new COVID-19 cases, two deaths since Friday

Province has just over 200 active cases

Hotel rooms for B.C. homeless too hasty, NDP government told

Businesses forced out, but crime goes down, minister says

Wage subsidy will be extended until December amid post-COVID reopening: Trudeau

Trudeau said the extension will ‘give greater certainty and support to businesses’

B.C. government prepares for COVID-19 economic recovery efforts

New measures after July consultation, Carole James says

COVID-19 exposure on Vancouver flight

The Air Canada 8421 flight travelled from Kelowna to Vancouver on July 6

Double homicide investigation leads Vancouver police to Chilliwack

A VPD forensics unit was in Chilliwack Saturday collecting evidence connected to East Van murders

Tree planters get help with COVID-19 protective measures

Ottawa funds extra transportation, sanitizing for crews

Trudeau apologizes for not recusing himself from WE decision

He says his and his family’s longtime involvement with the WE organization should have kept him out of the discussions

Most Read