Air Canada reports a wider loss as COVID-19 restrictions limit travel

Air Canada on Friday reported its fifth straight quarterly loss as tough government restrictions aimed at curbing the spread of COVID-19 weighed on air travel and drove the company to secure a C$5.9b government aid package. Speaking on an investor call, Air Canada executives said they assume the country’s travel restrictions - which have been more strict than those implemented in neighboring United States - will ease somewhat by Q4. Once that happens, they said travel patterns should be similar to those in the United States, where a fast vaccine rollout and falling numbers of COVID-19 cases have driven a surge in travel demand. Meanwhile, the Montreal-based airline is focusing on cargo and domestic flights while slashing capacity for international travel and cutting costs. Air Canada projects a net cash burn of between $13m and $15m per day in Q2 2021. Operating revenue fell to $729m in Q1 from $3.72b a year earlier. Canada’s largest carrier reported a loss of C$1.30b, compared with C$1.05b. Its shares rose 1.3% in early trading. Hopes that travel restrictions would loosen in time for the peak summer travel season are fading as Canada grapples with a third wave of coronavirus infections.<br/>