Air Canada lifts Q2 earnings despite 737 MAX grounding

Air Canada reported a 3.6 percent increase in traffic and 10.2 percent increase in revenues from the business cabin
Air Canada reported a 3.6 percent increase in traffic and 10.2 percent increase in revenues from the business cabin

Profits at Air Canada beat expectations in the second quarter thanks to higher travel volumes and rising business class income, the airline said Tuesday.

The positive earnings came despite the grounding of the company's fleet of 24 Boeing 737 MAX aircraft following two recent deadly crashes involving other carriers in Africa and Asia.

Other airlines have taken major hits to earnings due to the MAX grounding.

Canada's largest airline posted net income of Can$343 million ($260.4 million) for the , the company said in a statement.

That was up from a loss of Can$102 million in the same period a year ago.

Adjusted earnings amounted Can$0.88 per share, higher than the Can$0.75 analysts had been expecting.

Air Canada reported a 3.6 percent increase in traffic and 10.2 percent increase in revenues from the business cabin.

Second-quarter revenues were Can$4.8 billion, up from Can$4.3 billion in the same period last year.

Calin Rovinescu, the airline's president and chief executive, said the 737 MAX crisis had hit year-over-year pre-tax earnings growth, even though it had surpassed expectations.

"Our management team and all employees involved with this complex issue did an incredible job implementing creative solutions for our fleet, schedule, network and operations to get passengers to their destinations during the quarter," Rovinescu said in a statement.

The company does not expect to return is MAX planes to service before January 8, 2020.

The aircraft had been carrying between 9,000 and 12,000 passengers per day, according to the .


Explore further

Boeing reports 19% drop in Q1 plane deliveries on MAX grounding

© 2019 AFP

Citation: Air Canada lifts Q2 earnings despite 737 MAX grounding (2019, July 30) retrieved 15 October 2019 from https://techxplore.com/news/2019-07-air-canada-q2-max-grounding.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
 shares

Feedback to editors

User comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more