Air Canada has announced its impressive financial results for the second quarter, exceeding market expectations. The Canadian airline reported a net profit of 838 million Canadian dollars ($623.1 million), or C$2.34 per share, marking a significant improvement compared to a loss of C$386 million, or C$1.60 per share, in the same period last year.
Fuelled by robust demand for air travel, operating revenues surged by 42% to C$5.43 billion, surpassing analyst predictions of C$5.16 billion. Furthermore, free cash flows from operating activities increased by C$426 million, reaching C$1.49 billion, a commendable rise from the prior-year period.
Despite the overall positive performance, adjusted cost per available seat mile witnessed a slight increase of 1.6%, amounting to 13.3 Canadian cents. This can be attributed to higher passenger service costs, selling costs, and escalated expenses related to wages, salaries, and benefits due to the addition of more full-time employees.
Air Canada’s remarkable second-quarter results showcase its strength in the current market, reinforcing its position as a leading airline in the industry.
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