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

Thousands of ‘PPE’ donated in Surrey, where one care home is ‘preparing for the worst’

SafeCare BC’s Operation Protect drive involves drop-off dates in Guildford

Psychologist’s advice on parenting in the pandemic

SFU psychology prof Dr. Tanya Broesch, with expertise in child development, discusses short and long-term impacts COVID-19 pandemic is having on children and parents alike

‘Every little step counts’: Surrey businesses donate meals for frontline hospital workers

Surrey Hospital Foundation has now received more than $70,000 in donations

‘Shocking decision’: Surrey soccer club won’t offer refunds to 350 teams for cancelled tourney

Registration fees would top $171K for Surrey Mayor’s Cup, postponed due to COVID-19

VIDEO: Dog missing in Aldergrove since winter sees his family again for the first time

Aldergrove helped find Buster, says dad, who has now witnessed ‘the power of social media’

Trudeau rejects mandatory stay-at-home order for now; COVID deaths up

The virus has now infected more than 10,000 Canadians and cost 130 their lives

Cowichan couple won’t self-isolate after returning from overseas

New law requires 14 days of self-isolation when returning to Canada

Family uses social media to help truckers find places to eat during pandemic

Restaurants Serving Drivers in Western Canada seeks to provide a list of places open for drivers

Abbotsford man who tries to start gas-station fight gets sprayed with gasoline

Suspect returns with knife and throws it at victim, but is quickly arrested by police

Abbotsford family of 5 who was stuck in Vietnam is now back home

Janzen family sends ‘huge and heartfelt’ thank you to everyone who helped

Celebrate Easter in a ‘safe way,’ Dr. Henry urges as B.C records 6 new COVID-19 deaths

Top doctor urges British Columbians to halt non-essential travel within the province

B.C. health officer says homemade masks may prevent spread of COVID-19 to others

Practising physical distancing, frequent hand washing and resisting touching your face are proven methods

B.C.’s senior home staff measures show results in COVID-19 battle

Dr. Bonnie Henry’s order restricts care aides to one facility

Most Read