Business

Air Canada reports $1.05B first-quarter loss due to impact of COVID-19 pandemic

Air Canada says it lost $1.05 billion in its first quarter compared with a profit of $345 million in the same quarter last year as governments imposed travel restrictions around the world due to the COVID-19 pandemic.

Airline has cut its second-quarter capacity by 85 to 90 per cent from same time last year

An empty Air Canada check-in counter is seen at Montreal-Trudeau International Airport in Montreal, in this photo taken April 8, 2020. The airline reported a loss of more than $1 billion in its first quarter due to the impact of the coronavirus pandemic. (Paul Chiasson/The Canadian Press)

Air Canada says it lost $1.05 billion in its first quarter compared with a profit of $345 million in the same quarter last year as governments imposed travel restrictions around the world due to the COVID-19 pandemic.

The airline says the loss amounted to $4 per diluted share for the quarter compared with a profit of $1.26 per diluted share in the first quarter of 2019.

Operating revenue fell to $3.72 billion compared with $4.43 billion in the year-ago quarter.

On an adjusted basis, Air Canada says it lost $392 million, or $1.49 per diluted share, in the first quarter of this year compared with an adjusted profit of $17 million, or six cents per diluted share, in the first three months of 2019.

The airline has reduced its second-quarter capacity by 85 to 90 per cent when compared with the same quarter last year, while its third-quarter capacity is expected to be reduced by about 75 per cent compared with a year earlier.

Air Canada is also accelerating the retirement of 79 older aircraft in a move that it says will simplify the airline's fleet, reduce costs structure and lower its carbon footprint.

Watch: Justin Trudeau says federal government is considering support for sectors of the economy, including airlines 

Trudeau questioned about support for the airlines and other hard hit sectors

Politics News

10 months ago
2:53
Prime Minister Justin Trudeau spoke to reports on Monday 2:53

Add some “good” to your morning and evening.

A variety of newsletters you'll love, delivered straight to you.

Sign up now

now