Air Canada reported third-quarter profit that beat analysts’ estimates as fuel costs decreased and revenue rose during the carrier’s busiest travel season.
Adjusted earnings increased to $2.50 a share from $1.55 a year earlier, topping the $2.20 average of 12 analyst estimates compiled by Bloomberg. Revenue of $4.02 billion exceeded the $3.95 billion average estimate. Seat capacity this year will rise 9 per cent to 10 per cent following an increase of 10.5 per cent in the quarter, the airline said in a statement.
A 45 per cent plunge in jet kerosene prices in the past year is giving a boost to Chief Executive Officer Calin Rovinescu’s plan to cut costs through 2018. His strategy rests on the expansion of the Rouge leisure unit and the addition of new Boeing Co. 787 Dreamliners, which burn less fuel than the older aircraft they’re replacing.