Advertisement

Air Canada reports $1.05B loss in first quarter due to coronavirus pandemic

Click to play video: 'Airlines navigating a crisis that will change the industry'
Airlines navigating a crisis that will change the industry
WATCH: Airlines navigating a crisis that will change the industry – May 1, 2020

Air Canada says it lost $1.05 billion in its first quarter compared with a profit of $345 million in the same quarter last year as governments imposed travel restrictions around the world due to the COVID-19 pandemic.

The airline says the loss amounted to $4.00 per diluted share for the quarter compared with a profit of $1.26 per diluted share in the first quarter of 2019.

Operating revenue fell to $3.72 billion compared with $4.43 billion in the year ago quarter.

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

Get breaking National news

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

On an adjusted basis, Air Canada says it lost $392 million or $1.49 per diluted share in the first quarter of this year compared with an adjusted profit of $17 million or six cents per diluted share in first three months of 2019.

Story continues below advertisement
Click to play video: 'Airlines need federal support: industry expert'
Airlines need federal support: industry expert

The airline has reduced its second quarter capacity by 85 to 90 per cent when compared with the same quarter last year, while its third quarter capacity is expected to be reduced by about 75 per cent compared with a year earlier.

Air Canada is also accelerating the retirement of 79 older aircraft in a move that it says will simplify the airline’s fleet, reduce costs structure and lower its carbon footprint.

Sponsored content

AdChoices