Air Canada’s Q3 adjusted profit beats estimates, rises to $734 million

Air Canada’s Q3 adjusted profit beats estimates, rises to $734 million

MONTREAL — Air Canada (TSX:AC) is reporting a third-quarter profit far above analyst estimates — helped in part by lower fuel prices but also the result of cost-cutting initiatives and business improvements in recent years.

Its adjusted profit was $734 million or $2.50 per share. That was up 60 per cent from $457 million last year, and 29 cents per share above analyst estimates.

The Montreal-based airline says it benefited from the lower price of fuel, which was down 32 per cent from a year earlier, but its chief executive says Air Canada is also benefiting from strategic initiatives that have been put in place in recent years.

Revenue was up 6.9 per cent from last year at $3.7 billion — although about half of the $240-million increase was due to the positive effect of a weaker dollar on ticket sales in other currencies.

Air Canada’s net income, including items excluded from the adjusted profit, was $437 million or $1.48 per share, up from $323 million or $1.10 per share in the third quarter of 2014.

President and CEO Calin Rovinescu said he was very pleased with the financial results and said he expects the company to continue benefiting from a strategic plan that has been developed and executed over the last several years.

“The transformative changes we have made in recent years provide us with the cost structure, fleet and flexibility to respond not only to competitive market conditions, but also to fluctuations in the Canadian dollar and economic downturns. Moreover, our plan is not based on fuel prices staying at the current levels,” Rovinescu said in a statement.

“Our capacity additions for the year, largely in international markets, remain consistent with our plan that had been established in a higher fuel price environment and continue to be important contributors to our increased profits.”

The Canadian Press

Categories: Business

About Author

Write a Comment

Only registered users can comment.