Air Canada posts record results for Q2 2015

Air Canada reported a record second quarter adjusted net income of $250 million, up from $139 million reported in Q2 2014.

In a statement, Calin Rovinescu, Air Canada’s president and CEO, attributed the results to recent capacity additions in the carrier’s international markets, part of the airline’s flexible approach to passenger demand which he said allow the carrier to better respond to factors such as increased competition, higher fuel prices and a weakened loonie.

Among Air Canada’s Q2 highlights:

- The favourable impact of a weaker Canadian dollar on foreign currency denominated passenger revenues increased passenger revenues by approximately $61 million in the second quarter of 2015. 

- In the second quarter of 2015, operating expenses of $3.091 billion increased $31 million or 1.0 per cent from the second quarter of 2014 on the capacity growth of 9.3 per cent. The increase in operating expenses reflected the impact of the weaker Canadian dollar and capacity-related cost increases largely offset by the impact of lower jet fuel prices.

- Air Canada expects third quarter 2015 system ASM capacity, as measured by available seat miles (ASMs), to increase 9.5 to 10.5 per cent when compared to the third quarter of 2014.

- Approximately 55 per cent of the 2015 forecasted capacity increase will be through the continued lower-cost growth of Air Canada rouge, while approximately 38 per cent of the capacity growth will be targeted to international markets operated by the mainline carrier.

The full report is available here.