Robert Besser
14 May 2025, 01:03 GMT+10
MONTREAL, Canada: Air Canada has cut its annual core profit forecast and missed first-quarter revenue estimates, citing a drop in U.S.-bound travel driven by trade tensions and a weaker Canadian dollar, the airline said this week.
Canada's largest carrier revised its adjusted EBITDA projection for the year to a range of C$3.2 billion (US$2.30 billion) to C$3.6 billion, down from its previous estimate of C$3.4 billion to C$3.8 billion.
The airline reported first-quarter revenue of C$5.19 billion, a one percent decline from last year and below analyst expectations of C$5.29 billion, according to LSEG data.
Air Canada attributed the decline in part to Canadians canceling trips to the U.S. following President Donald Trump's tariffs on Canadian goods and his controversial remarks suggesting the U.S. should annex Canada.
The airline stated that the reduction in U.S.-bound bookings mirrors an industry-wide decline of around 10 percent over the next six months.
Its operations were further impacted by severe winter storms in Eastern Canada and a runway closure at Toronto Pearson International Airport after a Delta Air Lines jet accident in February.
Air Canada aims for C$30 billion in operating revenue by 2028 despite ongoing challenges, including higher costs for aircraft parts as manufacturers pass on the impact of tariffs.
The airline posted a first-quarter adjusted loss of C$0.45 per share, wider than last year's C$0.27 but better than analysts' forecast of a C$0.54 per share loss.
Get a daily dose of San Jose Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to San Jose Sun.
More InformationRussia, on the contrary, experiences no shortage of army volunteers, the president has said Ukrainian recruitment officials have...
Seven-time NBA all-star Damian Lillard, 34, recently joined a growing list of NBA athletes to be sidelined by a diagnosis of deep-vein...
(250511) -- SAN FRANCISCO, May 11, 2025 (Xinhua) -- Anthony Edwards (top R) of Minnesota Timberwolves shoots during the game 3 of the...
Washington DC [US], May 9 (ANI): Singer Kendrick Lamar leads the 2025 Black Entertainment Television (BET) awards with a total of 10...
Zhan Jiahui (1st L) in action against Denmark in the 2025 IIHF Women's World Championship Division I Group A in Shenzhen, China, April...
Washington [US], May 8 (ANI): TV personality and fashion designer Kristin Cavallari shared that fans wanted her to see in 'The Traitors'....
MONTREAL, Canada: Air Canada has cut its annual core profit forecast and missed first-quarter revenue estimates, citing a drop in U.S.-bound...
CUPERTINO, California: Apple's plan to introduce AI-powered search options on its Safari browser poses a major challenge to Google,...
FRANKFURT, Germany: Foreign workers have emerged as a critical force behind the euro zone's economic growth since the pandemic, offsetting...
NEW YORK, New York - U.S. stocks surged on Monday following news that the Trump administration had agreed to a 90-day reduction of...
SYDNEY, NSW, Australia - Stocks in Asia and the pacific have closed significantly higher following ceasefires in India-Pakistan hostilities,...
TOKYO, Japan: Toyota Motor Corp is bracing for a 21 percent decline in full-year profit, as the impact of President Donald Trump's...