Air Canada smashes expectations with record second quarter profit.
Increased passenger traffic and lower operating costs are driving profitability at Canadian airlines, with Air Canada reporting a record second-quarter profit that blew past elevated expectations.
Air Canada’s net income hit $300 million, or $1.08 per diluted share, in the three-month period ending June 30, an increase from $186 million, or $0.66 per diluted share, from the same time in 2016.
Passenger revenues climbed by $374 million to $3.52 billion, an increase of 11.9 per cent from last year, which was largely driven by traffic growth of 13.6 per cent
WestJet Airlines reported a quarterly profit that beat expectations as it flew more passengers and managed costs effectively.
The company, which said in April that it plans to launch an ultra-low-cost carrier in Canada, flew 5.9 million passengers in the second quarter ended June 30, up 11.5 percent from last year.
The Calgary-based company’s revenue passenger miles (RPMs), or traffic, increased 8.9 per cent, and capacity, measured in available seat miles (ASMs), grew 6.3 per cent. Excluding items, WestJet earned 41 Canadian cents per share, smashing past analysts’ estimate of 28 Canadian cents.
Net earnings rose to C$48.4 million ($38.8 million), or 41 Canadian cents per share, in the quarter, from C$36.7 million, or 30 Canadian cents, a year earlier. Revenue rose 11 percent to C$1.06 billion.