Air Canada Q3 income slips to $270 million
Nov. 4, 2011, Montreal - Air Canada reports third quarter income of $270 million, down from $306 million in the same quarter a year ago.
November 4, 2011 By The Canadian Press
Net income per diluted share was 55 cents in the quarter compared to 70 cents in the third quarter of 2010. Operating revenue was $3.42 billion — down from $3.03 billion.
Revenues were expected to increase eight per cent to $3.3 billion.
The airline's profit in the third quarter was expected to slip on average to 48 cents per share from 91 cents a year ago, with forecasts ranging between 11 and 73 cents per share, according to analysts polled by Thomson Reuters.
On an adjusted basis, it earned 64 cents per share last year.
The Montreal-based carrier's shares took a beating in the quarter, falling 36 per cent despite posting a 3.8 per cent traffic growth as it grappled with labour negotiations and a string of negative economic headlines.
Air Canada is awaiting an arbitration ruling to establish a new collective agreement with flight attendants.
It reached agreement with customer service agents following a three-day strike in June and recently abandoned a judicial review of an arbitrator's pension ruling that will set up a hybrid pension model for new hires.
The national carrier angered pilots by seeking Ottawa's help to appoint conciliators to help negotiate a collective agreement.
The International Air Transport Association upgraded industry profit forecasts in September to US$6.9 billion from US$4 billion. But it expects profits in 2012 will fall to US$4.9 billion on margins of 0.8 per cent.
Premium traffic on which Air Canada depends has slowed because of slowing economies and declining business confidence. IATA said it increased by only 2.3 per cent in August, compared to 7.5 per cent in July.
Air Canada recently announced the creation of more than 150 jobs as it expands its Montreal call centre.
The airline is Canada's largest domestic and international full-service airline providing scheduled and charter air transportation for passengers and cargo to more than 175
destinations on five continents.
It is the world's 15th largest commercial airline, providing service to more than 32 million passengers a year.