Air Canada posts strong Q1 results

Air Canada has reported a first quarter adjusted net income of $122 million for 2015, an improvement of $254 million compared to an adjusted net loss of $132 million in the first quarter of 2014. On a GAAP basis, Air Canada reported operating income of $200 million in the first quarter of 2015, compared to an operating loss of $62 million in the first quarter of 2014, an improvement of $262 million. 

The carrier attributed the results largely due to factors including:

• Lower than anticipated aircraft maintenance expenses, primarily driven by the acceleration of aircraft lease extensions and certain favourable lease return condition provision adjustments, reducing maintenance expenses by $22 million in the first quarter of 2015; 
• The impact of the new Jazz CPA, effective Jan. 1, 2015, whereby certain costs, such as ground handling services performed by Air Canada, are no longer recovered from Jazz and passed through to Air Canada under the Jazz CPA as capacity purchase fees, thereby reducing both other revenues and capacity purchase fees; and
• Lower than expected employee benefits expense due to lower benefit payments and improved plan experience.

For the complete version of Air Canada’s first quarter 2015 results, visit here.