Air Canada posts US$28m Q1 net loss as fuel costs soar
Air Canada incurred a 2017 Q1 net loss of C$37m (US$27.8m), reversed from a net profit of $101m in the 2016 March quarter, as rising fuel costs hit the bottom line. Executives pointed to record Q1 revenue of $3.6b, up 9% YOY, and the fact that the airline continues to aggressively grow, which they believe will pay off long term. “This year represents the third year of planned significant capacity growth as we execute our international expansion strategy,” president and CE Calin Rovinescu said, noting that capacity growth “will begin to slow in 2018.” Q1 expenses soared 16% YOY to $3.7b as higher fuel prices and fast-paced capacity expansion led to a 48%, or $213m, YOY jump in aircraft fuel costs to $659m. Air Canada posted a Q1 operating loss of $54m, reversed from an operating profit of $154m in the prior-year quarter. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-05-08/star/air-canada-posts-us-28m-q1-net-loss-as-fuel-costs-soar
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Air Canada posts US$28m Q1 net loss as fuel costs soar
Air Canada incurred a 2017 Q1 net loss of C$37m (US$27.8m), reversed from a net profit of $101m in the 2016 March quarter, as rising fuel costs hit the bottom line. Executives pointed to record Q1 revenue of $3.6b, up 9% YOY, and the fact that the airline continues to aggressively grow, which they believe will pay off long term. “This year represents the third year of planned significant capacity growth as we execute our international expansion strategy,” president and CE Calin Rovinescu said, noting that capacity growth “will begin to slow in 2018.” Q1 expenses soared 16% YOY to $3.7b as higher fuel prices and fast-paced capacity expansion led to a 48%, or $213m, YOY jump in aircraft fuel costs to $659m. Air Canada posted a Q1 operating loss of $54m, reversed from an operating profit of $154m in the prior-year quarter. <br/>
