AC posts record $300M Q2 profit

AC posts record $300M Q2 profit

Air Canada reported record second quarter net income of $300 million compared to net income of $186 million in the second quarter of 2016.

The airline recorded adjusted net income of $215 million in the second quarter of 2017 compared to adjusted net income of $203 million in the second quarter of 2016.

In the second quarter of 2017, on capacity growth of 13.5 per cent, record system passenger revenues of $3.517 billion increased $374 million or 11.9 per cent from the second quarter of 2016. The increase in system passenger revenues was driven by traffic growth of 13.6 per cent. Yield improvements were recorded in all markets with the exception of the Pacific market.

In the business cabin, system passenger revenues increased $90 million or 14.6 per cent from the second quarter of 2016 on traffic and yield growth of 11.2 per cent and 3.0 per cent, respectively.

In the second quarter of 2017, operating expenses of $3.629 billion increased $448 million or 14 per cent from the second quarter of 2016, mainly driven by the 13.5 per cent increase in capacity and higher fuel prices year-over-year.

Air Canada's cost per available seat mile (CASM) increased 0.5 per cent from the second quarter of 2016. The airline's adjusted CASM decreased 3.5 per cent from the second quarter of 2016, better than the 1.5 per cent to 2.5 per cent decrease forecast on May 5, 2017. This improvement was largely driven by lower than anticipated aircraft maintenance expense, which was mainly attributable to the deferral of certain maintenance activities into the remainder of 2017 and to lower end of lease maintenance provisions due to more favourable terms on wide-body aircraft lease extensions.