Air Canada Raises Annual Forecast Thanks to Surge in Travel

Air Canada sees itself on the winning side: Canada’s largest airline has raised its forecast for the annual core profit as the demand for international travel continues to grow strongly. In particular, large North American airlines with international connections are currently benefiting from a veritable surge in overseas travel and a revival in business travel bookings. To meet this demand, Air Canada is increasing the number of its daily flights to China and expanding capacities on other routes in the Asia-Pacific region. The aviation giant now expects an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of about 3.5 billion Canadian dollars for 2024, after previously forecasting a range of 3.1 to 3.4 billion Canadian dollars. Happily, Air Canada was able to increase its profit to 2.04 billion Canadian dollars, equivalent to 5.38 dollars per share, compared to 1.25 billion Canadian dollars or 3.08 dollars per share in the same period last year. A positive tax effect in the form of a recognized tax asset amounting to 1.15 billion Canadian dollars contributed to the net profit in the quarter.