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.

737 MaxCoronavirus

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

Just Posted

COVID-19: North Islanders bang pots and pans to honour essential workers

‘Hopefully we can keep it going for them because these people are showing up at work every day for us’

Bradshaw’s Photo Highlight: Juvenile eagle

‘I was able to drive up close to it and get a few pictures without getting out of the truck’

Port Hardy Secondary School’s 2019-2020 wrestling season

Both Lamothe and Speck thanked Cleary for volunteering his time to sponsor the program.

First government licensed cannabis shop on Vancouver Island celebrates one year in business

‘I’m really happy we’re here giving the public what they want’

Fire Chefs give back to community with one free meal a day to those who are in need

Fire Chefs will offer one free meal from 3:30 until 4:30 on the days they are open to those in need.

‘We will get through this’: B.C. sees new COVID-19 death, but 57% have recovered

A total of 1,066 people have tested positive for the novel coronavirus

Couple celebrates 61st anniversary through Vancouver Island seniors’ home window

Frank and Rena Phillips marked occasion at Nanaimo Seniors Village this week while social distancing

A look at some of the B.C. inventors creating life-saving tools in fight against COVID-19

Groups across B.C. are working together to create what they hope will help people affected by the pandemic

Association launches French-language games, online tools for families learning at home

Games, culture and vocabulary included in new virtual resources

‘There can be no ambiguity’: Travellers brought home to B.C. must self-isolate

Health Minister Adrian Dix said the mandatory isolation must be abided by

Belle from ‘Beauty and the Beast’ entertains home-bound kids in Cowichan Bay

Alora Killam, 16, played the part in musical two years ago

55+ BC Games cancelled amid COVID-19 concerns

Greater Victoria set to host 2021 event

BC Hydro offers three-month bill ‘holiday’ for those affected by COVID-19

Industrial customers can defer half of their power bills

Some April Fool’s Day jokes bring much-needed laughter; others tone deaf to COVID-19

Police are warning the public not to use the ongoing pandemic as a punchline

Most Read