Air Canada reports 2Q operating income of C$75 million but a net loss overall

Air Canada (Montreal) reported operating income of $75 million in the second quarter of 2010 compared to an operating loss of $113 million in the second quarter of 2009, an improvement of $188 million. Earnings before interest, taxes, depreciation, amortization and aircraft rent (EBITDAR) of $333 million increased $198 million from the second quarter of 2009 (an increase of 147 per cent). These results were in line with the preliminary range of operating income of $60 million to $80 million, and EBITDAR of $320 million to $340 million, announced in Air Canada’s news release dated July 20, 2010.

Air Canada estimates that disruptions to its transatlantic flying schedule following the closure of European airspace in mid-April due to volcanic ash had a negative impact of approximately $20 million on its operating income in the second quarter.

Air Canada reported a net loss of C$203 million in the second quarter of 2010 which included a charge of C$54 million in interest expense relating to its secured term credit facility, and foreign exchange losses of C$156 million. This compared to net income of $155 million in the second quarter of 2009 which included gains on foreign exchange of C$355 million.

Copyright Photo: Antony J. Best. Now gone, Boeing 777-333 ER C-FIVS (msn 35784) arrives at London (Heathrow) in the Vancouver 2010 motif.