Air Canada Posts Strong Quarterly Earnings Despite Flight Delays

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High demand, fares see Air Canada’s profits take off despite flight delays

posted quarterly earnings that soared to pre-pandemic levels amid high travel demand and pricier fares, and despite tens of thousands of flight delays.

The country’s largest airline roared back to profitability after nearly $1 billion in losses for all of 2022. It posted net income of $838 million in the quarter ended June 30 compared with a loss of $386 million in the same period a year earlier. Strong demand propelled more than 11 million customers across its network in the quarter, said CEO Michael Rousseau. Analysts also noted higher ticket prices behind the thicker profit margins.

The sturdy earnings came despite consistent delays across its network over the past two and a half months, with half of the carrier’s flights routinely arriving late or cancelled outright.Even with more staff and revamped technology, Air Canada’s operations in June and July failed to meet “expected levels,” Rousseau said. The company ranked last among North America’s 10 biggest airlines for on-time performance in July in a report by aviation data firm Cirium this week.

He also acknowledged problems on its large network of regional flights, run by Jazz Aviation. The CEO cited a pilot shortage amid new competitors – Flair Airlines and Lynx Air are two – stricter rules around rest and shift length as well as pilot schools that saw enrolment shrink to a trickle during the COVID-19 pandemic.

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Air Canada Posts Strong Quarterly Earnings Despite Flight DelaysAir Canada reported quarterly earnings that reached pre-pandemic levels, with net income of $838 million compared to a loss of $386 million the previous year. The airline attributed the strong earnings to high travel demand and higher ticket prices. Despite tens of thousands of flight delays, Air Canada saw over 11 million customers in the quarter. However, the company's operations failed to meet expected levels due to severe weather and global supply chain issues, resulting in consistently late or cancelled flights.
Source: globebusiness - 🏆 31. / 66 Read more »