Air Canada Reports First Quarter Loss of $143 Million

Air Canada has announced preliminary results for its first quarter 2013, claiming an adjusted net loss of approximately $143 million versus an adjusted net loss of $162 million in first quarter 2012.  It reported net loss of approximately $260 million versus a net loss of $274 million in 1st quarter 2012.  

Operating loss of $106 was reported versus operating loss of $91 million in 1st quarter 2012.  The airline reported EBITDAR (earnings before interest, taxes, depreciation, amortization and impairment, and aircraft rent) of approximately $145 million versus $174 million in the first quarter of 2012.

In a release, the airline said its financial results were negatively impacted by an estimated $10 million due to flight cancellations caused by severe weather conditions and operational challenges at the airline's major Canadian airport hubs, as well as aircraft deicing service delays at Toronto Pearson International Airport.

Air Canada also reported that other reasons for the loss included a higher proportion of leisure passengers versus business passengers, in part due to a shift of the Easter holiday. The airline said that an unfavorable foreign currency impact on passenger revenues also contributed to the lower operating results year-over-year. In addition, Air Canada expects to record an impairment charge of $24 million related to Airbus A340-300 aircraft (none of which are operated by Air Canada) which is reflected in Air Canada's preliminary operating loss and net loss results.

Source: Travel Pulse, http://www.travelpulse.com/air-canada-reports-first-quarter-loss-of-143-million.html