Air Canada AC-T -1.12%decrease narrowed its 2025 core profit forecast after reporting lower third-quarter profit on Tuesday, as the airline grapples with waning demand for travel to the U.S. amid trade tensions.
Canada’s largest carrier expects full-year adjusted earnings before interest, taxes, depreciation and amortization to be between $2.95-billion and $3.05-billion, compared with its prior forecast of $2.9-billion to $3.1-billion.
Cross-border travel between Canada and the U.S. has slowed significantly this year after President Donald Trump’s steep tariffs on Canadian imports sparked a widespread backlash, including cancellations of planned visits south of the border.
In the third quarter, the Canadian carrier also struggled with a major shutdown after nearly 10,000 flight attendants walked off the job in a high-profile strike demanding better wages and compensation for unpaid “ground work.”
Air Canada adds four U.S. routes from Toronto’s Billy Bishop
The four-day walkout, which defied a government back-to-work order, led to the cancellation of thousands of flights and grounded most of Air Canada’s fleet, severely disrupting operations and denting revenue.
Last month, the airline trimmed its financial expectations for the quarter and the full year to account for a hit from the strike.
Air Canada said it recorded a one-time pension past service cost and other labor-related charges of $173-million in the quarter, including ones related to the tentative agreement reached with Canadian Union of Public Employees.
The company reported an adjusted profit of $223 million, or 75 Canadian cents per share, for the quarter, compared with $969 million, or $2.57 per share, a year earlier.
Total operating revenue was $5.77-billion, compared with $6.11-billion in the year-ago period.
Leave a Reply
You must be logged in to post a comment.