Air Canada Second-Quarter Profit Up 2 Percent

Air Canada, the country’s largest airline, said its second-quarter profit rose 2 percent as the company flew fuller planes.

The company said it earned $147.6 million, including gains on the revaluation of foreign currency monetary items of $160 million. It earned $152 million in the 2006 quarter. Air Canada’s operating profit, which excludes unusual gains and charges, fell to $88 million from $113 million.

Air Canada also said it no longer counts Jazz Air as a segment since a spin-off by parent ACE Aviation, and that its consolidated results would not be directly comparable to last year’s numbers.

Costs for the company, measured as operating expense per available seat mile rose 1 percent from the second quarter of 2006. Air Canada said operating revenue rose to $2.64 billion from $2.58 billion.

It said passenger revenues increased 3 percent, or $74 million, over the same period last year mainly due to traffic growth of 3 percent on a capacity increase of 2 percent.