Air Canada posts quarterly loss as COVID-19 hammers demand

Air Canada reported a loss for the second quarter on Friday, hit by a plunge in passenger numbers as coronavirus-driven travel restrictions slammed demand.

The airline forecast third-quarter net cash burn of between C$15 million ($11.18 million) and C$17 million per day on average, compared with net cash burn of about C$19 million per day in the previous quarter.

Rising COVID-19 cases in Canada and the United States have dampened hopes for a swift recovery in demand for air travel as countries re-impose restrictions and passengers balk at flying for fear of contracting the virus.

"Canada's federal and inter-provincial restrictions have been among the most severe in the world, effectively shutting down most commercial aviation in our country," said Chief Executive Officer Calin Rovinescu, adding that the airline saw a 96pc drop in passengers carried during the second quarter.

European airlines and Air Canada have urged the Canadian government to remove pandemic-related restrictions.

Air Canada had C$9.12 billion in liquidity, as of June 30.

It forecast third-quarter capacity to decline by about 80pc, higher than an earlier forecast of at least 75pc.

Total revenue plunged 89pc to C$527 million.

Canada's largest carrier said net loss was C$1.75 billion, or C$6.44 per share, in the quarter ended June 30, compared with a profit of C$343 million, or C$1.26 per share, a year earlier.