Air Canada raises core profit forecast on robust international demand

Air Canada on Friday raised its annual core profit forecast and announced share buybacks, as the country's largest carrier benefits from strong demand for international travel. Major North American carriers with international operations are cashing in on booming demand for overseas travel and improved business bookings. Air Canada is increasing its flights to China, while also adding capacity to other Asia-Pacific routes, even as it saw some pressure on transatlantic travel, the airline said. Mark Galardo, Air Canada's executive vice president for revenue and network planning, said the carrier is seeing early indications that transatlantic business will bounce back in 2025. The Montreal-based carrier reported quarterly earnings ahead of analysts' expectations for revenues and adjusted profits, despite seeing weeks of softer booking volumes due to labor uncertainty as its pilots negotiated a new contract. Last month, Air Canada signed a new labor deal with its pilots, which would give the aviators a general four-year cumulative pay hike of about 42%, generating about C$1.9b in additional value. Air Canada is now monitoring how a weeks-long strike by more than 33,000 factory workers and a production crisis at U.S. planemaker Boeing would affect deliveries of the carrier's remaining 12 737 MAX aircraft, CFO John Di Bert told analysts. Some deliveries are expected in 2025.<br/>