Air Canada (TSX:AC) lost more than $1 billion in the final quarter of 2020.
Canada’s flagship air carrier has posted a $1.16-billion loss for the fourth quarter of 2020, a result that caps off what the company's chief executive officer (CEO) called the "bleakest year in aviation history."
Despite the losses, Air Canada CEO Calin Rovinescu said that he is encouraged by the progress of recent talks with the federal government about a bailout package for the aviation sector, which have been ongoing for months without a resolution.
Any bailout would include a resolution on passenger refunds, a plan for returning service to regional markets and financial support for the aerospace sector, Rovinescu said.
The Air Canada CEO also hinted at potential reforms coming to Canada's travel restrictions this spring, saying that he expected an increased COVID-19 testing program to replace some quarantine measures by the time airlines are scheduled to resume many flights on April 30.
The company released its earnings days after government regulators approved Air Canada's $190-million purchase of Transat A.T. (TSX:TRZ)
Air Canada reported a fourth-quarter net loss of $3.91 per diluted share, compared with profit of 56 cents per diluted share or $152 million a year earlier. The airline's operating revenue dropped to $827 million in the fourth quarter, down from $4.43 billion in the same three months of 2019, as the COVID-19 pandemic continued to hamper air travel.
Analysts polled by financial data firm Refinitiv expected Air Canada to lose $735.67 million or $2.84 per share, on revenue of $885.36 million. For the full-year, Air Canada lost $4.65 billion or $16.47 per diluted share on $5.83 billion of revenues. That compared with a profit of $1.48 billion or $5.44 a share on $19.13 billion of revenues in 2019.
