Air Canada (TSX:AC.B) posted a wider-than-expected loss for the first quarter, sending the Canadian airline’s shares more than 8% lower on Thursday.
It posted an adjusted net loss of C$96 million or a loss per share of C$0.27, more than the loss per share of C$0.07 expected by market watchers.
The company’s operating expenses grew by 6% year-over-year to $5.2 billion with the airline noting it saw higher costs in nearly all line items in addition to greater labor, maintenance and information technology expenses. Lower fuel costs partially offset the increase.
Operating revenue of C$5.23 billion represented a 7% year-over-year increase and was ahead of estimates of C$5.19 billion on an 11% jump in capacity.
The company reiterated its full-year 2024 guidance of a 6% to 8% increase in available seat miles capacity and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $3.7 billion to $4.2 billion.
“As we look toward the summer, we see a continued healthy demand environment, and our customers will have a wide range of exciting travel options across Europe, Asia, and North America, for their summer holiday planning,” CEO Michael Rousseau commented.
“For the full year 2024, we remain certain of our ability to generate significant free cash flow.”
Shares of Air Canada (TSX:AC.B) had shed 8.6% at C$18.70 at noon on Thursday.