Update: Air Canada jumped the most in six months after the carrier reported third-quarter earnings. Shares rose 5.4 per cent to C$12.58 at 9:32am in Toronto after earlier rising as much as 7.1 per cent for the biggest intraday gain since April 29.
Air Canada reported a better than expected quarterly profit as it flew more passengers, particularly on new international routes, and benefited from lower fuel costs.
Traffic increased almost 19 per cent in the third quarter from a year earlier.
The Montreal-based airline posted a “very strong set of results that underscore successful execution of the company’s strategy even in the face of difficult market conditions in certain segments,” Fadi Chamoun, a BMO Capital Markets analyst, said in a note to clients.
Air Canada, which added 10 international routes earlier this year, said there was 27.9 per cent growth in international to international passengers connecting via Canada.
The carrier’s fuel cost per litre fell 10.2 per cent in the quarter ended September 30.
The country’s largest airline said its cost per available seat mile (CASM), excluding fuel costs and unusual items, fell 8.3 per cent.
The company’s adjusted CASM, a measure of how much an airline spends to fly a passenger, fell 5.9 per cent.
Air Canada said net income rose to C$768 million (Dh2.1 billion), or C$2.74 per share, in the quarter ended September 30 from C$437m, C$1.48 per share, a year earlier.
Excluding items, the company earned C$2.93 per share, above the average analyst estimate of C$2.55, according to Reuters.
The Montreal-based airline’s revenue rose 10.6 per cent to C$4.45bn, beating analysts’ average estimate of C$4.3bn.
* Reuters
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