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UPDATE 1-Lower fuel costs helps Air Canada post a quarterly profit

Published 2016-04-29, 06:36 a/m
© Reuters. UPDATE 1-Lower fuel costs helps Air Canada post a quarterly profit
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April 29 (Reuters) - Air Canada AC.TO , the country's
largest airline, on Friday reported a first-quarter profit,
compared with a loss a year earlier, helped by a decline in fuel
costs.
The carrier said it expects adjusted cost per available seat
mile, which excludes fuel costs, to fall between 1.75 percent
and 2.75 percent in 2016 as it expects the Canadian dollar to
strengthen through the year.
Air Canada had forecast in February that these costs would
range between a decline of 0.5 percent and an increase of 0.5
percent for the year.
A weaker Canadian dollar hurts Canadian airlines as they
purchase planes and fuel in U.S. dollars.
Air Canada's operating expense per available seat mile
dropped about 3.3 percent in the first quarter, as lower fuel
costs more than offset the negative impact of a weaker national
currency.
The company reported a net profit of C$101 million ($81
million), or 35 Canadian cents per share, for the quarter,
compared with a loss of C$309 million, or C$1.08 per share, a
year earlier.
Operating revenue rose 2.9 percent to C$3.34 billion.
Air Canada said it expects earnings before interest, taxes,
depreciation, amortization and aircraft rent in 2016 to increase
4-8 percent from last year.
($1 = C$1.25)

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