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

Vandals deface Aldergrove elementary school with racist slur, male genitalia

Langley School District confirms it has filed a report with the Langley RCMP

‘Our hands are tied’: Langley Good Times Cruise-In announces cancellation due to COVID-19

People are encouraged to donate to the chosen Langley charities online, said Cruise-In director

Rideshare expands into Aldergrove

As of Thursday, Lyft is now offering service throughout Metro Vancouver

Conservationists in race against time to rehabilitate grizzly cubs transferred to Aldergrove zoo

‘Let them be assessed now before their fate is sealed,’ urges B.C. conservationist Barb Murray

Pink flags on Langley church grounds raise awareness about sex-selective abortion

On Saturday, 1,000 pink flags will be placed on the lawn of Christ Covenant Church

B.C. sees 25 new COVID-19 cases, community exposure tracked

One death, outbreaks remain in two long-term care facilities

VIDEO: Vancouver Island cat missing 18 months reunited with family

Blue the cat found at Victoria museum 17 kilometres from home

VIDEO: Alberta man rescues baby eagle believed to be drowning in East Kootenay lake

Brett Bacon was boating on a lake in Windermere when he spotted the baby eagle struggling in the water

Police nab three impaired drivers in one night in Maple Ridge

Ridge Meadows RCMP served 80 impaired driving infractions in June

B.C.’s COVID-19 job recovery led by tourism, finance minister says

Okanagan a bright spot for in-province visitor economy

National Kitten Day aka the ‘purrfect’ day to foster a new friend

July 10 marks National Kitten Day, a special day to celebrate all things kittens

Lower Mainland YouTubers claim to be Kelowna display toilet ‘poopers’

RCMP can not speak to legitimacy of video, will be investigating

Haida matriarchs occupy ancient villages as fishing lodges reopen to visitors

‘Daughters of the rivers’ say occupation follows two fishing lodges reopening without Haida consent

Conservatives say police should be called into investigate WE charity scandal

Trudeau is already under investigation by the ethics commissioner for potential conflict of interest

Most Read