Air Canada is cutting its 2024 forecast amid challenges such as sustained supply chain pressures, evolving market conditions and ongoing geopolitical issues.Ground crew prepare an Air Canada plane for a flight at Pierre Elliott Trudeau International Airport in Montreal, Friday, Dec. 23, 2023. THE CANADIAN PRESS/Christinne Muschi
MONTREAL – Air Canada is lowering its 2024 forecast as it grapples with tough competition in international markets and its planes aren’t as full as it anticipated during the second half of the year.
The airline says it now expects its adjusted earnings before interest, taxes, depreciation and amortization for the year to be within $3.1 billion to $3.4 billion, down from its previous outlook of $3.7 billion to $4.2 billion.
The new outlook comes as the company reported preliminary results for the second quarter ahead of its next earnings date of Aug. 7.
Air Canada says it expects operating revenues of around $5.5 billion for its second quarter, compared with $5.4 billion in the same quarter last year.
It also expects operating income of $466 million, down from $802 million in the second quarter of 2023.
The carrier says it is effectively managing costs through productivity, cost reductions and other cost discipline initiatives.
This report by The Canadian Press was first published July 22, 2024.
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