MONTREAL — Air Canada says it expects lower earnings this year due to sky-high fuel costs after a tough quarter that saw its bottom line nearly cut in half.
The country’s largest airline is now forecasting adjusted earnings of between $2.4 billion and $2.7 billion versus the $2.9 billion to $3.2 billion it predicted less than three months ago.
Air Canada is reporting net income attributable to shareholders of $139 million for the three months ended Sept. 30, down 47 per cent from the same period a year earlier.
The Montreal-based company says third-quarter operating revenues grew 21 per cent to a record $6.98 billion, as it tried to offset rising expenses that included a $906-million year-over-year fuel cost increase.
On an adjusted basis, the carrier says adjusted earnings stayed flat at 75 cents per share, well above analysts’ predictions of 50 cents per share, according to financial markets firm LSEG Data & Analytics.
Chief financial officer John Di Bert says the company’s surging revenues reflect strong demand and more cash intake per passenger.
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