Air Canada Nets Record Profit

AIr Canada plane 3

CBJ — Air Canada earned a record second-quarter profit of $300 million, up from $186 million a year ago.

The airline says the profit amounted to $1.08 per diluted share for the quarter ended June 30 compared with a profit of 66 cents per diluted share in the second quarter of 2016.

On an adjusted basis, Air Canada says it earned $215 million or 78 cents per diluted share for the quarter, up from $203 million or 72 cents per diluted share a year ago.

Revenue totalled $3.91 billion for the three-month period, up from nearly $3.46 billion a year ago, as it increased capacity and saw traffic grow by nearly 14%.

Air Canada said its cost per available seat mile increased 0.5% from the second quarter of last year, however it fell on an adjusted basis by 3.5% compared with last year.

That was better than the decrease of 1.5% to 2.5% that had been forecast earlier this year.

Meanwhile rival airline WestJet is delaying the launch of its discount airliner until next summer after originally planning to have it up and running this year. The delay comes in part after the airline decided to switch to a lower-cost booking system. It also likely won’t receive all the proper regulatory certificates until the first quarter of next year.

@CanBizJournal

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