Air Canada Reports $126 Million First Quarter Operating Loss

Air Canada reported a reduced operating loss of $126 million in the first quarter of 2010 compared to the operating loss of $188 million in the first quarter of 2009, an improvement of $62 million.

Air Canada’s operating revenues increased $128 million or 5 percent from the same quarter in 2009. Earnings before interest, taxes, depreciation, amortization and aircraft rent (EBITDAR) of $138 million increased $81 million from the first quarter of 2009.

Air Canada reported a net loss of $85 million in the first quarter of 2010, which included gains on foreign exchange of $100 million. This compared to a net loss of $400 million in the first quarter of 2009, which included losses on foreign exchange of $101 million.

Passenger revenues of $2.095 billion in the first quarter of 2010 increased $84 million or 4 percent from the first quarter of 2009. The passenger revenue increase was due to a 6.4 percent growth in traffic, reflecting a strengthening economy and a 6.6 percent growth in capacity. The capacity growth was achieved through a 3.1 percent increase in aircraft utilization.