Air Canada reports profit versus year-ago loss on strong international travel demand

AIR Canada reported a quarterly profit compared with a year-ago loss on Monday (Oct 30), as the carrier benefited from strong demand for international travel.

North American airlines operating international flights are benefiting from sustained demand for long-haul journeys as more people plan holidays abroad, despite contending with higher costs.

Such airlines face pressure from higher labour costs, with pilots at US legacy carriers nabbing steep pay increases in new contracts or tentative agreements.

Last month, Air Canada pilots staged a protest demanding better pay and benefits as talks over a new contract covering 4,500 pilots at the company continue.

Canada’s largest airline posted net profit of C$1.25 billion (S$1.23 billion), or C$3.08 per share, for the quarter ended Sept 30, compared with the net loss of C$508 million, or C$1.42 per share, a year earlier.

The Canadian carrier’s quarterly operating revenue rose 19.2 per cent to C$6.34 billion. REUTERS