Newspaper article The Canadian Press

Air Canada's Q2 Profit Declines, Revenue Up Slightly to $3.46 Billion

Newspaper article The Canadian Press

Air Canada's Q2 Profit Declines, Revenue Up Slightly to $3.46 Billion

Article excerpt

Air Canada's Q2 profit declines

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MONTREAL - Air Canada is reporting a lower profit for this year's second quarter as it dramatically increased the number of routes offered by its main fleet and discount brand.

"In the quarter, Air Canada and Air Canada Rouge launched 10 new international routes and 11 new transborder routes (to the U.S.) marking the most intensive period of expansion in Air Canada's history," chief executive Calin Rovinescu said.

"Moreover, on June 30 we served more than 160,000 customers, setting an all-time record which we expect to surpass during the upcoming August long weekend."

Higher costs helped push the Montreal-based airline's net income lower to $186 million or 66 cents per share -- down from $296 million or $1 per share in the second quarter of 2015.

The main reasons for the decline were an unfavourable swing in foreign exchange rates and two unusual items last year that didn't recur.

The quarter's operating expenses were up $90 million or three per cent, including $51 million from non-fuel expenses denominated in foreign currencies, as well as the cost of growing fleet capacity by 11 per cent. …

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