air canada\'s quarterly profit soars

by:Powerful Toys     2019-12-16
MONTREAL —
After Air Canada released another record quarter, it is expected to achieve high profits this year, as demand remains healthy despite the weak Canadian economy.
The country\'s largest airlines benefit from lower fuel prices and non-fare charges. The Montreal-
The company said on Wednesday that net profit jumped 33% in the second quarter to $0. 296 billion.
Net income was $1 diluted share, up from 75 cents or $0. 223 billion per share in 2014.
\"Given the travel needs and patterns of North American customers, demand continues to enter traditionally our most important quarter strongly,\" CEO Calin Rovinescu said on a conference call on Wednesday.
He said the increase in capacity primarily for international routes is driving profits and allowing airlines to manage events such as a decline in the Alberta market.
\"We can adjust quickly if we see weak demand.
\"We are building an airline for a long time,\" he told analysts . \".
\"This will not change once fuel prices eventually rise.
\"Air Canada\'s revenue for three months is $3.
414 billion, an increase of $0. 109 billion over 2014.
Including $61-
The Company believes that the lower loonie has led to millions of growth.
The airline expects the Canadian dollar to remain weak against the dollar. 27 per U. S.
Dollars for the whole year.
It also assumes that the average aviation fuel price this year is 64 cents per liter and Canada\'s economy is growing relatively low. Air Canada (TSX:AC)
He said that the country\'s low dollar and competitive prices have begun to reduce the number of Canadians traveling to airports near the United States. S. border. Excluding one-
Time program, Air Canada earned a record $0. 25 billion or 85 cents per share in adjusted profits.
This is one cent higher than Thomson Reuters\'s average estimate.
By contrast, $0. 139 billion or 47 cents a year ago.
Although revenue from Air Canada remains strong due to lower fuel prices and lower fuel surcharges, mainly in markets such as Japan, Hong Kong, South Korea and Brazil, where fuel surcharges are regulated.
It also benefits from a 18% increase in ancillary income, mainly the increase in baggage costs, as well as higher costs for preferred seating and seating options.
The company said it expects to record again in the third quarter. 30.
David Tyerman of Canaccord Genuity is expected to launch a range of initiatives, including expanding Rouge, a travel subsidiary, and increasing more efficient services. From 2014 to 2019, the long-range Boeing 787 will further improve its performance, and achieve meaningful growth.
\"We continue to expect the normalization of profits, but the new decline in fuel prices has delayed the time for this trend until 2016,\" he wrote in a report . \".
\"Air Canada\'s ability to fill in very high capacity growth remains a concern, especially given the weakness of the Canadian economy, but so far the company has done a good job of filling aircraft.
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