(Montreal) For the first time since 2022, Air Canada recorded a net loss in its most recent quarter.
The Montreal-headquartered airline reported Thursday that it posted a net loss of $81 million, or 22 cents per share, in the first quarter of fiscal 2024.
This result compares to a net profit of 4 million for the same period last year.
Air Canada had not reported a net loss since the third quarter of 2022.
Despite everything, its president and CEO, Michael Rousseau, emphasized in a press release that the company’s results were “solid” in the first quarter, which ended March 31.
The adjusted net loss of 188 million reported in the first quarter of 2023 was notably reduced to 96 million in the corresponding quarter in 2024.
Air Canada explains that it uses the adjusted net loss to measure the overall performance of its activities, excluding certain factors which can “distort the analysis of certain commercial trends and make any comparative analysis with other airlines less relevant”.
Operating revenues increased by 7% in one year, to 5.23 billion, while operating expenses increased by 6%, to 5.22 billion.
The carrier justifies this increase in its operating costs by the increase in costs in practically all areas, as well as by the increase in costs for personnel, maintenance and information technology.
The reduction in the fuel load partially offset this increase, it was clarified.
According to Mr. Rousseau, Air Canada will be able to confirm its forecasts for the entire 2024 fiscal year, since as summer approaches, the company notes that demand remains vigorous.
Company in this report: (TSX: AC)