Air Canada has slashed its full-year guidance for the second quarter in a row as high jet fuel prices proved worse than expected. The Montreal-based carrier now anticipates adjusted earnings before interest, tax, depreciation and amortization between C$2.4 billion and C$2.7 billion. In August, the airline had expected adjusted Ebitda of as much as C$3.2 billion.
Thursday's third-quarter earnings release cut that outlook again, citing a C$906 million year-over-year increase in fuel expenses. The carrier sees jet fuel costing approximately C$1.72 per liter for the fourth quarter, up from a previous estimate of C$1.29 per liter. Despite the tough cost backdrop, Air Canada reported third-quarter operating revenue of C$7 billion, an all-time record.
Passenger revenue from US-Canada cross-border flights jumped 12% in the first nine months of the year. Adjusted Ebitda of C$936 million was about 8% higher than analysts expected. New Chief Executive Officer Anko van der Werff is due to take the helm by the end of January, coming from Scandinavian airline SAS AB.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing