(Adds details on results, analysts estimates)
Oct 25 (Reuters) - Air Canada 's AC.TO third-quarter profit handily beat analysts' estimates as the country's largest airline flew more passengers and kept a tight lid on costs.
The company has been cutting costs and upgrading its fleet with fuel-efficient aircraft amid higher fuel costs after oil prices rebounded from multi-year lows in 2016.
Passenger revenue at Air Canada rose 9.1 percent to C$4.48 billion ($3.53 billion) in the third quarter, while traffic increased 9 percent.
The company also said adjusted cost per available seat mile (CASM) - a key measure of how much an airline spends to fly a passenger - dropped 2.1 percent.
The airline earned C$1.79 billion, or C$6.44 per share, in the quarter ended Sept 30, compared with C$768 million, or C$2.74 per share, a year earlier. company recorded a net income tax recovery of C$793 million in the latest quarter.
Excluding items, Air Canada earned C$3.43 per share, beating analysts average estimate of C$3.28, according to Thomson Reuters I/B/E/S.
Operating revenue was C$4.88 billion, up from C$4.45 billion a year earlier. ($1 = C$1.27)