Air Canada (AC.TO) reported their third quarter profit, which fell short of the estimate due to lower flight capacity in the grounding of Boeing Co’s (BA.N) 737 MAX airplanes.
The airline had previously warned investors that third quarter profits would be affected by the grounding of its 24 MAX jets. Capacity was expected to decline 2% at summer during the busy travel season in comparison to the previous year.
The company has pulled the MAX from its flight schedule until February 14, 2020. Air Canada’s passenger revenue per available seat mile increased 5.3% in the third quarter due to higher average fares.
Canada’s largest carrier’s net income reached C$613 million, amounting to C$2.27 per share. A year earlier it was C$580 million, amounting to C$2.10 per share. Analysts had expected an average quarterly profit of C$2.34 per share, according to IBES data from Refinitiv.
http://lexatrade.com/news/air-canada-falls-short-of-profit-estimates-due-to-max-grounding
