Air Canada shares soar on potential govt aid and vaccine development

Air Canada shares surged more than 28% Monday as news of a potential COVID-19 vaccine and government assistance for the industry eclipsed dismal third-quarter results brought about by global pandemic lockdowns. The Montreal-based airline said it lost $685m, or $2.31 per diluted share, in the three months ending Sept. 30, during what is normally its most profitable quarter. “I think there are a lot of people who are very, very hesitant to make any travel arrangements now, based on these restrictions and quarantines,” said CE Calin Rovinescu on a conference call with financial analysts on Monday. “Even if they feel safe to travel … they can’t justify coming back and taking two weeks at home in quarantine.” During the same period last year, Air Canada had a profit of $636m, or $2.35 per diluted share. Third-quarter sales fell 86% from a year ago, down to $757m from $4.77b. The company says it hopes to save $3b between now and 2023 by cutting the number of planes in its hangars. It plans to retire 79 older aircraft, defer the purchase of 18 Airbus planes and 16 Boeing planes, and cancel its plans to buy 10 Boeing 737 MAX 8 and 12 Airbus A220s. However, it will still receive five new Airbus A220s this winter. The cost-cutting measures come as Air Canada plans to cut its Q4 capacity by approximately 75% compared with Q4 2019.<br/>