An empty Air Canada check-in counter is seen at Montreal-Trudeau International Airport in Montreal, on Wednesday, April 8, 2020. THE CANADIAN PRESS/Paul Chiasson

Air Canada reports $1.05B first-quarter loss due to impact of COVID-19 pandemic

The airline has reduced its second quarter capacity by 85 to 90 per cent

Air Canada says it lost $1.05 billion in its first quarter compared with a profit of $345 million in the same quarter last year as governments imposed travel restrictions around the world due to the COVID-19 pandemic.

The airline says the loss amounted to $4.00 per diluted share for the quarter compared with a profit of $1.26 per diluted share in the first quarter of 2019.

Operating revenue fell to $3.72 billion compared with $4.43 billion in the year ago quarter.

On an adjusted basis, Air Canada says it lost $392 million or $1.49 per diluted share in the first quarter of this year compared with an adjusted profit of $17 million or six cents per diluted share in first three months of 2019.

The airline has reduced its second quarter capacity by 85 to 90 per cent when compared with the same quarter last year, while its third quarter capacity is expected to be reduced by about 75 per cent compared with a year earlier.

Air Canada is also accelerating the retirement of 79 older aircraft in a move that it says will simplify the airline’s fleet, reduce costs structure and lower its carbon footprint.

READ MORE: WestJet joins Air Canada in hoping to qualify for wage subsidy to bring workers back

READ MORE: Air Canada and others suspend flights until June as sector slammed by COVID-19

The Canadian Press


Like us on Facebook and follow us on Twitter.

Air CanadaAir TravelCoronaviruseconomy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Go Fund Me campaign for family of CN rail worker who died at Thornton Yard in Surrey

Jasvinder Singh Riar, 31, died while at work at the Canadian National Railway Thornton Yard in North Surrey early Monday morning

As thrift store aims to reopen, Surrey Hospice Society struggles to raise funds

‘Right now I think people are suffering grief more than they ever have’

After delay, ‘Metro Vancouver’s Largest Indoor Amusement Park’ set to open in Surrey

At Central City Fun Park, ‘things will be a little different than what we had originally planned’

COVID-19: Daily update on pandemic in Surrey, White Rock and beyond

JUNE 3: Threat of fines quashes South Surrey seniors’ daily workouts

Surrey School District forecasts up to 30 per cent of students will return to class this week

Education Minister Rob Fleming said on June 1, about 60,000 B.C. children returned to school

If Trudeau won’t stand up to Trump, how will regular people: Singh

Trudeau did not directly answer a question about Trump’s actions amid protests

Highway 1 closed north of Yale after body found on highway

Coroners Service reportedly on the scene, next Drive BC update at noon

Teen cashier praised after paying grocery bill for Aldergrove woman

Otter Co-op’s Brooklyn Roberts asked to pay Tamara Smith’s $44 grocery bill after debit card declined

As two B.C. offices see outbreaks, Dr. Henry warns tests don’t replace other measures

Physical distancing, PPE and sanitizing remain key to reduce COVID-19 spread

Facing changes together: Your community, your journalists

Importance of accurate, ethical reporting more critical than ever

Young killer whale untangles itself from trap line off Nanaimo shore

DFO marine mammal rescue unit was en route as whale broke free from prawn trap line

Racist incident shocks Vancouver Island First Nation

Port Alberni RCMP investigating after video shows truck wheeling through Tseshaht territory

Vancouver Island school principal mourns brother, cousin killed during U.S. protests

Jelks says he’s grateful for the outpouring of support from the community in the wake of this tragedy

Bank of Canada keeps key interest rate target on hold at 0.25%

Central bank now expects GDP to decline between 10 and 20 per cent compared with the fourth quarter of 2019

Most Read