Nevertheless,
Canadians will sulk united states new:
The revenues that the air carrier of cross -border travel has decreased by 11 % in the second quarter. However, reports the Montreal company in its management report. However,
Air Canada has adjusted its offer accordingly by reducing its capacity on these roads by 8.4 % during the quarter.
Leisure destinations such as Florida. Meanwhile, Arizona and Las Vegas are the most affected by reducing capacity, said the commercial affairs chief Mark Galardo, at a conference call with analysts on Tuesday. However,
“We believe that we are going to restore this capacity gradually. Meanwhile, but, at the moment, we are continuing to prepare for a context where things remain like that, without real improvement in demand,” said Galalardo. In addition, We believe that the situation will last until the end of canadians will sulk united states new the year. Similarly, ”
Air Canada can however adjust quickly as needed, he said. Therefore, “We have a lot of flexibility to move capacity.”
The trend is not isolated. Nevertheless, while the protectionist aims of the American president, Donald Trump, led to a Canadian boycott movement, particularly visible on the side of travel, but also in certain retail segments, including foodstuffs. Nevertheless,
In May, plane trips by Canadian residents in the United States decreased by 24.2%, according to Statistics Canada. Car journeys, for their part, fell 38.1%, still in May.
Air Canada was able to count on its other destinations to limit the damage. Internal travel income increased by 3.2% and those of transatlantic trips increased by 5.2%.
Despite economic uncertainty, Mr. Galalardo has given encouraging signals regarding reservations for the coming months. “We see greater vigor canadians will sulk united states new for the months of September, October and November, than normally.”
Possible strike – Canadians will sulk united states new
Air Canada must. however, deal with a more uncertain horizon when his on -board agents are voting on a possible strike mandate. The vote takes place until August 5.
Questioned by analysts. the president and chief executive officer of Air Canada, Michael Rousseau, did not want to advance if the possibility of a strike had had effects on demand. “We really don’t want to talk too much about this subject since we are in negotiations,” he said to say.
A possible labor conflict represents a short -term risk, believes the financial banking analyst, Cameron Doerksen. “We still believe that the evaluation of the action is attractive,” wrote the analyst in a note.
Downward profit
Air Canada’s profitability decreased in the second quarter. canadians will sulk united states new Its net profit melted just over half, $ 186 million compared to 410 million at the same period last year.
“We are generally satisfied with our results. especially when we know that 2025 has been an extraordinary year so far,” commented Mr. Rousseau
Despite the opposite winds, Air Canada reiterated its financial forecasts for the year 2025. It anticipates a profit before interest, taxes and depreciation of depreciation (Baiida) adjusted between 3.2 billion and 3.6 billion during the financial year.
The adjusted profit established $ 0.60 per share in the second quarter, compared to $ 0.98 per share the previous year. Income, for their part, increased by 2 % to 5.63 billion.
Before the publication of the results, analysts anticipated a profit per share of $ 0.72 and revenues of 5.55 billion, according to the financial data firm Refinitiv.
For RBC analyst of capital markets. James McGarraggle, the most recent quarterly results do not change much to his optimistic thesis. “Our opinion on the quarter is neutral,” he reacted. The thesis of the resumption of demand. operational realignment remains intact, despite a slight reverse on costs during the quarter. »»
The mood of investors seems, however, more pessimistic than that of analysts.
Air Canada’s action lost $ 2.78, or 12.60 %, at $ 19.26 on the Toronto Stock Exchange in the Berth.
Company in this dispatch: (TSX: AC)
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