Air Canada returns to profit but suspends full-year guidance
Updated
Updated · The Wall Street Journal · Apr 30
Air Canada returns to profit but suspends full-year guidance
11 articles · Updated · The Wall Street Journal · Apr 30
The Montreal-based airline posted a C$48 million first-quarter profit on revenue of C$5.79 billion, versus a C$102 million loss a year earlier.
It forecast second-quarter adjusted EBITDA of C$575 million to C$725 million, below analysts' C$743.3 million estimate, while expecting to offset 50% to 60% of higher fuel costs.
Air Canada said strong demand persists across its network, but Middle East-driven energy market disruption has made second-half fuel forecasts unreliable and prompted the guidance withdrawal reported earlier Thursday.
Airlines face a fuel cost tsunami. Can record travel demand survive the inevitable surge in ticket prices and flight cuts?
With a key Mideast oil route blocked, is the world facing an energy crisis far worse than the oil shocks of the 1970s?