The tail of the newly revealed Air Canada Boeing 787-8 Dreamliner aircraft is seen at a hangar at the Toronto Pearson International Airport in Mississauga, Ont., on February 9, 2017. THE CANADIAN PRESS/Mark Blinch

Air Canada expects hit in Q1 of 2020 due to novel coronavirus and MAX grounding

The outlook came as Air Canada reported a fourth-quarter profit of $152 million

Air Canada says its first quarter is expected to be hurt by the suspension of flights to mainland China and from Toronto to Hong Kong due to the novel coronavirus, the continued grounding of its fleet of Boeing 737 MAX aircraft and increased maintenance and pension costs.

The airline says it expects its first-quarter earnings before interest, taxes, depreciation and amortization to be about $200 million lower than the first quarter of 2019.

The outlook came as Air Canada reported a fourth-quarter profit of $152 million or 56 per diluted share compared with a net loss of $360 million or $1.33 per diluted share in the fourth quarter of 2018.

The fourth quarter of 2019 included foreign exchange gains of $92 million while the last three months of 2018 included foreign exchange losses of $444 million.

On an adjusted basis, Air Canada says it earned $47 million or 17 per diluted share in the fourth quarter of 2019 compared with an adjusted profit of $55 million or 20 cents per diluted share in the fourth quarter of 2018.

Analysts on average had expected an adjusted profit of 38 cents per share for the quarter, according to financial markets data firm Refinitiv.

Operating revenue totalled nearly $4.43 billion, up from nearly $4.23 in the same quarter a year earlier.

READ MORE: More airlines, including Air Canada, drop flights to China as virus spreads

READ MORE: Air Canada, WestJet remove Boeing 737 Max from operating schedule until June

The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

‘Difficult but necessary’ – local parks, trails, rec sites closed amid pandemic

Several closures by province in area due to physical distancing concerns

Organ donation gives Fraser Valley RCMP officer a second chance at life

Cathleen Falebrinza celebrates Green Shirt Day after receiving a double lung transplant in 2016.

Stay off the tracks and stay alert, rail police warn

Last year, seven were killed and 10 seriously injured in rail crossing, trespassing incidents

Open houses discouraged as Chilliwack realtors look for a way forward

March saw strong sales but April likely to see lower numbers

Chilliwack hospital offers thank-you message to community

Chilliwack health-care workers say they have heard everyone’s support throughout COVID-19 pandemic

UPDATE: Canadians awake to extra COVID-19 emergency benefit money, feds clarify changes

The CRA and federal officials are working to clarify the confusion around payments

Major crimes investigating sudden death of North Okanagan child

The 8 year old was flown to Kelowna General Hospital and died hours later

BC institution has highest number of positive results for COVID-19

11 inmates in Mission test positive for coronavirus, more than any other federal prison in Canada

Easter Bunny added to B.C.’s list of essential workers

Premier John Horgan authorizes bunny to spread “eggs-ellent cheer” throughout province

Travellers returning to B.C. must have self-isolation plan or face quarantine: Horgan

Premier John Horgan says forms must be filled out by travellers

More than 400 animals have been adopted amid pandemic: B.C. SPCA

People are taking this time of social distancing to find a loyal companion through the animal welfare group

B.C. secures motel, hotel rooms for COVID-19 shelter space

Community centres, rooms reserved for pandemic self-isolation

Sanders drops 2020 bid, leaving Biden as likely nominee

Sanders plans to talk to his supporters later Wednesday

Most Read