Air Canada’s earnings exceed estimates as fuel prices decline

Air Canada reported Q2 profit that beat analysts’ estimates as revenue increased and the country’s biggest carrier benefited from lower fuel prices.<br/>Adjusted earnings amounted to 72 Canadian cents, topping the 60-cent average of estimates compiled by Bloomberg. Revenue rose 1.3% to C$3.46b, missing the C$3.53b that analysts expected. CEO Calin Rovinescu’s five-year plan to reduce costs is being helped by a decline of about 20% in jet-fuel prices over the past year. He is adding flights to the U.S. and overseas, expanding the Rouge leisure unit and adding Boeing Co. 787 jets, which burn less fuel than the older aircraft they are replacing. Fuel is one of the biggest expenses for airlines, accounting for about one-third of costs.<br/>Air Canada rose 1.8% to C$9.44 on Thursday in Toronto. That put the stock down 7.5% this year, trailing the 12% advance by Canada’s benchmark Standard & Poor’s/TSX Composite Index.<br/>