Air Canada (AC) has reported a first-quarter profit of $4 million as its revenue reached a record high of $4.9 billion in the three months ended March 31.
The Montreal-based airline said its revenue nearly doubled in Q1 compared with a year earlier as travellers continue to fly more.
This year’s first quarter marked the second in a row that Air Canada has turned a profit following 11 straight quarters of financial losses that cumulatively totaled $10 billion.
However, higher costs narrowed the company’s profit to just $4 million. That was still up substantially from a loss of $974 million in the first quarter of 2022.
Air Canada management said that demand looks likely to remain strong this year amid robust advance bookings.
Air Canada Vacations produced exceptionally strong results in Q1, while the airline’s cargo business added five more freighters to the one it operated a year ago, said the company.
Higher interest rates on Air Canada's $6.5 billion of debt rose 17% to $245 million in Q1 from a year ago, though the company reduced its debt load by $500 million in the quarter.
Lower jet fuel prices led Air Canada to raise its forward guidance, saying it now expects earnings of between $3.5 billion and $4 billion for all of this year.
Air Canadas stock has risen 3% over the last 12 months to $21.12 per share.
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