Air Canada beats on yields, optimistic on future bookings

Air Canada beat estimates, helped by Q3 yields and lower costs, with executives from the country’s largest airline optimistic about travel heading into the busy winter season. “We’re feeling good about what we’re seeing with future bookings,” Benjamin Smith, the carrier’s President, Passenger Airlines, told analysts on Wednesday. Yield grew by 0.4% on an annual basis, the first reported absolute yield growth in a quarter since the first three months of 2014, Smith said. Air Canada, which has been adding more destinations in Europe and Asia, sees opportunities from service vacated by carriers like insolvent Air Berlin and struggling Alitalia. “What we are seeing ... is the elimination in service from the weaker carriers such as Air Berlin and Alitalia into North America which definitely is providing opportunities for us,” Smith said. Air Canada expects initial expressions of interest from bidders before year’s end for a previously announced plan to launch its own loyalty program with partners, CE Calin Rovinescu said. Air Canada said it expects costs to go up slightly in the rest of the year due to higher wages. The carrier said adjusted cost per available seat mile for the full year would decrease 3 to 4% in 2017, compared with the 3 to 5% drop it estimated earlier. Air Canada said passenger revenue rose 9.1% to C$4.48b in the Q3, while traffic increased 9%. That helped operating revenue jump nearly 10%. Cost per available seat mile fell 2.1%, on an adjusted basis, Air Canada said. The airline’s profit in the latest quarter more than doubled to C$1.79b or C$6.44 per share, from C$768m or C$2.74 per share a year earlier.<br/>