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Air Canada profits soar amid high demand and fares, and despite flight delays

MONTREAL — Air Canada says earnings last quarter reached heights not seen since before the COVID-19 pandemic amid high travel demand and pricier fares, and despite thousands of flight delays.

The country’s largest airline posted net income of $838 million in the quarter ended June 30 compared with a loss of $386 million in the same period a year earlier.

Air Canada says operating revenues in its second quarter climbed to $5.43 billion from $3.98 billion the year before.

On an adjusted basis, the Montreal-based company says diluted earnings hit $1.85 per share versus a loss of $1.12 per share a year prior, towering over analyst expectations of 68 cents per share, according to financial markets data firm Refinitiv.

CEO Michael Rousseau says strong demand propelled more than 11 million customers across its network in the quarter, and analysts also noted higher ticket prices behind the thicker profit margins.

Rousseau says that despite more staff and revamped technology, Air Canada’s operations in June and July failed to meet expected levels, with the company ranked last among North America’s 10 biggest airlines for on-time performance in July in a report by Cirium this week.

News from © Canadian Press Enterprises Inc., 2021