Air Canada Posts Higher Q3 Profit

Air Canada AIDIF reported an 8% gain in its Q3 profit. Air Canada's quarterly net income surged to C$323 million ($283.4 million), or C$1.10 per share, versus a year-ago profit of C$299 million, or C$1.05 per share. Its adjusted profit rose to C$1.55 per share, from C$1.29 per share. However, analysts were expecting a profit of $1.44 per share. Its revenue gained 9.2% to C$3.8 billion, while system passenger revenue climbed 9.4% to C$3,476 million. Traffic rose 11% in the quarter. Passenger revenue per available seat mile slipped 0.2%, while passenger load factor rose 1.0 percentage points. Earnings before interest, taxes, depreciation, amortization and aircraft rent jumped to C$749 million from C$626 million. The company's operating margin widened to 13.8% from 12%. At September 30, 2014, Air Canada's unrestricted liquidity was C$2,802 million, versus C$2,412 million at September 30, 2013. "I am extremely pleased to report Air Canada's best financial performance of any quarter in the Corporation's 77-year history, surpassing previous records for adjusted net income, operating income and EBITDAR," said Calin Rovinescu, President and Chief Executive Officer.