Air Canada (TSX:AC) lost $1.05 billion in its first quarter compared with a profit of $345 million in the same quarter of 2019 as travel restrictions were imposed around the world due to the coronavirus pandemic.
Canada’s flagship airline said the loss amounted to $4.00 per diluted share for the quarter, compared with a profit of $1.26 per diluted share in the first quarter of 2019. Operating revenue fell to $3.72 billion compared with $4.43 billion a year ago.
On an adjusted basis, Air Canada said it lost $392 million, or $1.49 per diluted share, in the first quarter of this year compared with an adjusted profit of $17 million or six cents per diluted share in first three months of 2019.
Air Canada has reduced its second quarter capacity by 85% to 90% when compared with the same quarter last year, while its third quarter capacity is expected to be reduced by about 75% compared with a year earlier.
The airline is accelerating the retirement of 79 older aircraft in a move that it says will simplify the airline’s fleet, reduce costs and lower its carbon footprint.