Air Canada feels bigger impact from currency flux but Q4 adjusted earnings rise

Air Canada Boeing 767-333/ER (Senohrabek / Shutterstock)

MONTREAL — A bigger hit from foreign exchange fluctuations contributed to a $100-million fourth-quarter net loss at Air Canada, although the company’s adjusted net income improved dramatically to $67 million.

Air Canada’s the net loss amounted to 35 cents per diluted share, while its adjusted net income amounted to 23 cents.

Analysts had estimated 24 cents per share of adjusted earnings.

A year earlier, Air Canada’s net loss for the fourth quarter of 2013 was $6 million or two cents per share while its adjusted net income was $3 million or one cent per share.

The adjusted income excluded several routine items including a $115-million foreign exchange loss during the fourth quarter, which was more than double the $55 million loss recorded a year earlier.

The adjusted income also excluded a $30-million onetime item related to a new contract with Air Canada’s pilots, ratified in October.

Revenue for the three months ended Dec. 31 improved to $3.1 billion, up 7.2 per cent or $210 million from a year earlier.

Air Canada chief executive Calin Rovinescu says the airline served nearly three million more customers in 2014, including those that flew on its low-cost Rouge service.

He said the airline expects significant cost savings from the drop in oil prices.