Air Canada (AC.TO) posted a smaller loss in the third quarter of the year as it more than doubled the number of passengers it carried during a busy but chaotic summer season.
The Montreal-based airline reported a net loss of $508 million in the three months ending Sept. 30, or $1.42 per diluted share, less than the $640 million loss, or $1.79 per diluted share it reported in the same quarter last year. Operating revenue was $5.322 billion in the third quarter, more than double the $2.1 billion earned last year.
While Air Canada posted a loss in the quarter, its operating profit came in at $644 million, the first time it reached positive territory since the start of the COVID-19 pandemic. .
“These results are tied to the return of travel, which remains on a gradual recovery as we predicted this quarter,” chief executive Michael Rousseau said on a conference call with analysts on Friday.
“Our key operational metrics, including flight completion and baggage handling, are now back to pre-pandemic levels. Air Canada is emerging from a pandemic stronger, more resilient and more adaptable. We are certainly well positioned to take advantage of the ongoing recovery. .”
Rousseau says Air Canada carried 11.5 million passengers in the third quarter of this year, more than double the number of passengers it carried in the same period last year, and almost 90% of all the customers it carried during all of 2021.
The findings come as travel demand increases in Canada, particularly for leisure and sun destinations. Air Canada says demand for leisure and sun destinations has exceeded 2019 levels. With demand rising, the company says it plans to increase capacity in the fourth quarter to 85% of what it flew in 2019 .
But the resurgence in travel demand, combined with labor shortages and processing issues, has led to a wave of cancellations and delays and wreaked havoc at Canada’s busiest airports. Air Canada apologized to customers earlier in August for the operational instability seen during the post-pandemic ramp-up.
The airline says operations have since improved.
“After a challenging June and July, we saw significant operational improvement throughout August and September, with today’s operation now on par with pre-pandemic levels” , Rousseau said in a statement released along with the results.
“Nevertheless, we know that many customers have experienced travel disruptions this summer, and we sincerely regret any inconvenience that has occurred.”
One area still lagging in the post-pandemic recovery is business travel, although Air Canada Chief Commercial Officer Lucie Guillemette says the company has seen steady improvements from month to month. another with regard to business travel.
“Will we ever return to 2019 levels for pure corporate (travel) as we knew? We’ll have to wait and see,” Guillemette said.
“But there is no doubt that we are seeing a new type of business traffic here, with customers combining business travel with leisure. There are certainly new segments emerging post-pandemic.”
Air Canada’s stock was up 4% midday Friday, trading at $20.08 a share on the Toronto Stock Exchange. The stock is down about 8% since the start of the year.
Alicja Siekierska is a Senior Reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.
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