Air Canada says post-COVID ‘revenge travel’ slowing as profits fall
Global News
Air Canada says it lost $81 million in its first quarter, falling below analysts' expectations even as revenue and capacity ramped up.
Air Canada lost $81 million in its first quarter, falling below analysts’ expectations even as revenue and capacity ramped up.
Canadians’ diminishing appetite for post-pandemic travel yielded thinner profit margins on fares, while a 21 per cent year-over-year rise in labour costs drove up overall expenses, the company said.
“As expected, pent-up demand and ‘revenge travel’ factors are slowing over time,” said Mark Galardo, head of revenue and network planning, on a conference call with analysts Thursday.
“Winter is challenging every year,” added CEO Michael Rousseau, referring to what is traditionally the toughest quarter for North American carriers.
Nonetheless, the company boosted passenger revenues by nearly 11 per cent year over year in the quarter ended March 31.
It also reaffirmed plans to bolster capacity by between six per cent and eight per cent and increase adjusted earnings to between $3.7 billion and $4.2 billion this year.
However, the airline still expects to remain below its soaring 2019 capacity levels until 2025, five years after the COVID-19 pandemic first hammered the travel industry.
This year, the carrier hopes a long-awaited return in business travel will jump-start its earnings, despite a slow start.
A weaker Canadian dollar tied to Donald Trump's victory could be inflationary north of the border, which could make our central bank more hesitant to cut rates too quickly.
The employee was indicted for allegedly distributing personal information of TD Bank customers, the latest criminal probe to hit the U.S. arm of the Canadian financial institution.
Stock markets were rising broadly higher on news of Donald Trump's U.S. election victory on Wednesday. Here's how investors say you should adjust your portfolio.
The Bank of Canada's Carolyn Rogers says improving housing affordability ultimately requires reaching a balance between supply and demand, which she says will take time.
Donald Trump was previously a crypto skeptic but changed his mind and took a favorable view of cryptocurrencies ahead of the election.
Canadians continue to make payments on their mortgages, but there are signs of stress bubbling up on other credit products, which CMHC warns could continue to spread to home loans.
Canadians continue to make payments on their mortgages, but there are signs of stress bubbling up on other credit products, which CMHC warns could continue to spread to home loans.
Bell Canada will use $4.2 billion of the proceeds it got from selling its stake in Maple Leaf Sports & Entertainment to Rogers Communications to fund this acquisition.
With the costs of pet ownership rising, the Competition Bureau sees an opportunity to drive down the prices of medication by expanding distribution to pharmacies.
Major North American carriers with international operations are cashing in on a booming demand for overseas travel and a resurgence in business bookings.