Air Canada raises full-year core profit outlook on strong demand

Air Canada Thursday raised its full-year forecast for core profit, citing a stronger-than-anticipated demand environment and lower-than-expected fuel costs. Shares of Canada's largest carrier rose 10% on Friday. Easing restrictions spurred international travel demand, helping carriers to mitigate cost pressures even as rising inflation is making leisure activities more expensive. Despite a looming recession, major North American carriers remain confident of filling up seats on planes due to a constrained capacity and a shift in consumer expenditure to services from goods. Air Canada said on Thursday it expects 2023 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) at about $3.5 - $4.0b, up from prior outlook of about $2.5 - $3.0b. The carrier added it expects its 2023 capacity to increase by about 23% from a year earlier to hit 90% of pre-pandemic levels, but down from 24% forecast earlier. Airlines are having to temper their capacity expectations for the year due to delivery delays from planemakers Boeing and Airbus.<br/>