Air Canada cuts profit outlook amid fierce global competition

Air Canada trim its full-year halfway profit forecast connected Monday, arsenic over-capacity successful definite markets and title connected world routes impacted its pricing power.

A unreserved among carriers to rate successful connected summer travel request has forced airlines to connection discounts connected tickets to capable their planes.

The updated forecast reflects nan little output environment, less-than-expected load factors for nan 2nd half of nan twelvemonth and competitory pressures successful world markets, Canada’s largest bearer said connected Monday.

The hose now expects its 2024 adjusted net earlier interest, taxes, depreciation and amortization (EBITDA) to beryllium successful nan scope of C$3.1 cardinal ($2.26 billion) to C$3.4 billion, compared pinch its erstwhile forecast of C$3.7 cardinal to C$4.2 billion.

Air Canada reported a preliminary second-quarter operating gross of C$5.5 billion, up 6% from a twelvemonth earlier. Analysts connected mean were expecting operating gross astatine C$5.65 billion, according to LSEG data.

The bearer besides expects second-quarter operating income astatine C$466 million, compared pinch C$802 cardinal reported a twelvemonth earlier.