Air Canada Monday reported a surprise quarterly profit that sent shares up more than 5% in earlier trading, helped by flying more passengers and its purchase of a loyalty program, despite pressures from the grounding of Boeing’s 737 MAX jets. Canada’s largest carrier said it sees strong demand ahead of summer, and expects second-quarter results in line with forecasts made before the global grounding of Boeing Co’s 737 MAX in March, following two fatal crashes involving the aircraft model. The grounding, which hit 20% of the carrier’s mainline narrowbody fleet “stress tested us and we passed,” Air Canada CEO Calin Rovinescu told analysts. North American operators of the MAX wrestled during the first quarter with harsh weather and the plane’s grounding, while facing pressure from rising jet fuel costs. Air Canada is awaiting the green light from regulators, but will also conduct its own safety assessment before returning the plane to service, Rovinescu said. He said Air Canada’s training requirements may exceed those of Boeing and the US FAA. Canada has said the country’s pilots must receive simulator training for Boeing’s new 737 MAX software fix, going beyond an FAA-appointed board which has proposed additional training without requiring a simulator. Air Canada, currently the only North American carrier with the MAX simulator, has trained its pilots on “some of the scenarios” that occurred during recent Lion Air and Ethiopian Airlines crashes, Rovinescu said. Revenue from Air Canada’s acquisition of the Aeroplan loyalty program, along with a 4.2% rise in traffic, drove a nearly 5% increase in passenger yield, the company said. Cost per available seat mile (CASM) - a measure of how much an airline spends to fly a passenger - climbed 3.8%. Air Canada reported adjusted net income of C$17m, or 6 Canadian cents per share, in Q1 ended March 31, compared to a loss of C$26m, or 10 Canadian cents per share, a year earlier.<br/>
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A Brazilian appeals court Monday suspended a bankruptcy auction set for Tuesday, in which struggling carrier Avianca Brasil hoped to raise at least $140m by selling some of its coveted airport takeoff and landing rights, known as slots. The suspension could put further stress on Avianca Brasil, the country’s No. 4 airline, which has been operating with very little cash since filing for bankruptcy protection in December. The airline said in a statement that it was still analyzing what it would do in response and that it had not filed an appeal as of Tuesday afternoon. It was unclear when a new auction would be scheduled. The auction would have capped an arduous process in which Avianca Brasil fought aircraft lessors for months to try to keep operating its fleet despite missed payments. The airline’s operations have shrunk dramatically since April, when lessors won definitive rulings allowing them to repossess planes. Its fleet is down to six aircraft, from as many as 60 Airbus planes late last year. Suspension of Tuesday’s auction was requested by airport operator Swissport AG, which runs several Brazilian airports and is owed some 17m reais ($4.3m).<br/>
Asiana Airlines said Tuesday it plans to suspend three international air routes starting early July to improve profitability. The three routes include flights from South Korea to two Russian cities and an Indian city. As part of its cost-cutting efforts, the country’s second-biggest airline said it would also halt operations of its first-class seats starting September, but instead offer cheaper premium seats called Business Suite.<br/>