After tripling revenue in Q1, Air Canada will add capacity

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“This summer, we will be at nearly 80% of 2019, and we’re targeting to be close to full recovery during 2024”

An Air Canada flight from Narita International airport in Tokyo, Japan arrives at Toronto Pearson International airport's Terminal 3 at 2 pm on Friday April 23, 2021. Jack Boland/Toronto Sun/Postmedia Network
An Air Canada flight from Narita International airport in Tokyo, Japan arrives at Toronto Pearson International airport’s Terminal 3 at 2 pm on Friday April 23, 2021. Jack Boland/Toronto Sun/Postmedia Network Photo by Jack Boland /Jack Boland/Toronto Sun

MONTREAL — Air Canada on Tuesday said it is adding capacity to meet a rebound in spring traffic, after reporting a larger-than-expected quarterly loss.

Carriers are benefiting from a broader revival in travel demand as pandemic-related restrictions ease, but face cost pressures.

US air traffic has recovered more quickly than in Canada, which introduced tougher COVID-19 restrictions.

Canada’s largest carrier said it would increase its available seat mile (ASM) capacity for the second quarter by approximately 414% compared with the same three months in 2021.

“This summer, we will be at nearly 80% of 2019, and we’re targeting to be close to full recovery during 2024,” Air Canada Chief Commercial Officer Lucie Guillemette told analysts in a call.

Air Canada reported quarterly revenues of C$2.57 billion, up from C$729 million in 2021.

Analysts on average were expecting revenues of C$2.638 billion, according to estimates from Refinitiv.

Canada attracted more than one million travelers during the week of April 11 for the first time since the pandemic, according to government data.

“The year began with weakness brought on by the Omicron variant and travel restrictions,” Air Canada Chief Executive Michael Rousseau said in a statement. “However, we quickly rebounded in March with passenger volumes exceeding the strong December levels.”

He said passenger ticket sales last month were more than 90% of March 2019 levels, “a leading indicator to much stronger 2022 second- and third-quarter results.”

Air Canada reported a loss for the first quarter of C$2.72 per diluted share compared with a loss of C$3.90 per diluted share during the same period in 2021.

Analysts were expecting a loss of C$1.49 a share, according to estimates from Refinitiv.

Air Canada said it had selected GTF engines from Raytheon Technologies Corp’s Pratt & Whitney unit to power its ordered Airbus A321XLR aircraft.


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