Air Transport World

Air Canada

Air Canada reported a 28% rise in net earnings for the quarter ended June 30, and record operating income of C$148 million ($97.5 million). Much of the improvement in net income, however, came from the sale of the airline's holding in the Galileo CRS. Revenues rose 13% but expenses kept pace and despite the improved operating results, operating margin actually declined slightly.

Furthermore, unit costs associated with the passenger side of the business rose 9.7%, prompting Chairman and CEO Lamar Durrett to announce a number of initiatives to improve cost performance and boost profitability, including focusing on its Calgary and Vancouver hubs in Western Canada and redeploying aircraft into "highly profitable" transborder markets. …

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