Air Canada Lowers Annual Earnings Forecast Amid Rising Fuel Costs

Air Canada lowered its annual adjusted earnings forecast to between $2.4 billion and $2.7 billion, down from a previous estimate of $2.9 billion to $3.2 billion. The airline attributed the revision to fuel costs that increased by $906 million year-over-year.

For the quarter ending September 30, the company reported a 47% drop in net income attributable to shareholders, which fell to $139 million. However, operating revenues reached a third-quarter record of $6.98 billion, a 21% increase. Adjusted earnings for the quarter were 75 cents per share, surpassing analyst expectations of 50 cents per share.

To mitigate rising expenses, the airline implemented fare hikes that led to a 19.4% year-over-year increase in Canadian airfares for September. Chief Financial Officer John Di Bert stated that the company remains focused on executing on what it can control and noted that its financial position provides flexibility to respond to near-term developments despite a challenging environment.