AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)
Business & Finance

Air Canada reports a wider loss as COVID-19 restrictions limit travel

  • Once that happens, they said travel patterns should be similar to those in the United States, where a fast vaccine rollout and falling numbers of COVID-19 cases have driven a surge in travel demand.
  • Canada's largest carrier reported a loss of C$1.30 billion, compared with C$1.05 billion. Its shares rose 1.3% in early trading.
Published May 7, 2021

Air Canada on Friday reported its fifth straight quarterly loss as tough government restrictions aimed at curbing the spread of COVID-19 weighed on air travel and drove the company to secure a C$5.9 billion ($4.84 billion) government aid package.

Speaking on an investor call, Air Canada executives said they assume the country's travel restrictions - which have been more strict than those implemented in neighboring United States - will ease somewhat by the fourth quarter.

Once that happens, they said travel patterns should be similar to those in the United States, where a fast vaccine rollout and falling numbers of COVID-19 cases have driven a surge in travel demand.

Meanwhile, the Montreal-based airline is focusing on cargo and domestic flights while slashing capacity for international travel and cutting costs.

Air Canada projects a net cash burn of between $13 million and $15 million per day in the second quarter of 2021.

Operating revenue fell to $729 million in the first quarter from $3.72 billion a year earlier.

Canada's largest carrier reported a loss of C$1.30 billion, compared with C$1.05 billion. Its shares rose 1.3% in early trading.

Hopes that travel restrictions would loosen in time for the peak summer travel season are fading as Canada grapples with a third wave of coronavirus infections.

Only Canadian citizens, residents and essential workers can enter the country. Those entering must complete a 14-day quarantine, and people entering by air must spend up to three days of the quarantine in a hotel, a measure Chief Executive Michael Rousseau called on the government to remove.

"The current mandatory hotel quarantine for arrivals has proven ineffective. It should be eliminated," he told investors.

Comments

Comments are closed.