Air Canada boosted its outlook for the second time in three months, joining US airlines in posting big revenue gains on international routes.
Canada’s largest airline said it expects to post C$3.75 billion to C$4 billion in adjusted earnings before interest, taxes, depreciation and amortization for this year, thanks to strong demand and lower jet fuel prices. Previously, the bottom end of its guidance was C$3.5 billion ($2.6 billion).
The Montreal-based company reported operating revenue of C$5.43 billion and operating profit of C$802 million for the second quarter. Both numbers beat analysts’ forecasts.
“We are particularly pleased with our international performance, propelling nearly 70% of the year-over-year increase in passenger revenues,” Chief Executive Officer Michael Rousseau said Friday in a statement.
North American airlines have been enjoying strong ticket sales to overseas destinations as consumers seize the opportunity to take longer trips they couldn’t do during the Covid pandemic. US airlines that focus on shorter domestic routes are in a tougher environment, forced to discount fares to fill seats while also paying more for workers.
