The tail of the newly revealed Air Canada Boeing 787-8 Dreamliner aircraft is seen at a hangar at the Toronto Pearson International Airport in Mississauga, Ont., on February 9, 2017. THE CANADIAN PRESS/Mark Blinch

Air Canada expects hit in Q1 of 2020 due to novel coronavirus and MAX grounding

The outlook came as Air Canada reported a fourth-quarter profit of $152 million

Air Canada says its first quarter is expected to be hurt by the suspension of flights to mainland China and from Toronto to Hong Kong due to the novel coronavirus, the continued grounding of its fleet of Boeing 737 MAX aircraft and increased maintenance and pension costs.

The airline says it expects its first-quarter earnings before interest, taxes, depreciation and amortization to be about $200 million lower than the first quarter of 2019.

The outlook came as Air Canada reported a fourth-quarter profit of $152 million or 56 per diluted share compared with a net loss of $360 million or $1.33 per diluted share in the fourth quarter of 2018.

The fourth quarter of 2019 included foreign exchange gains of $92 million while the last three months of 2018 included foreign exchange losses of $444 million.

On an adjusted basis, Air Canada says it earned $47 million or 17 per diluted share in the fourth quarter of 2019 compared with an adjusted profit of $55 million or 20 cents per diluted share in the fourth quarter of 2018.

Analysts on average had expected an adjusted profit of 38 cents per share for the quarter, according to financial markets data firm Refinitiv.

Operating revenue totalled nearly $4.43 billion, up from nearly $4.23 in the same quarter a year earlier.

READ MORE: More airlines, including Air Canada, drop flights to China as virus spreads

READ MORE: Air Canada, WestJet remove Boeing 737 Max from operating schedule until June

The Canadian Press


Like us on Facebook and follow us on Twitter.

737 MaxCoronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta predicting 400 to 6,600 deaths from COVID-19 in months to come

Alberta predicting 400 to 6,600 deaths from COVID-19 in months to come

Alberta RCMP have reported being threatened with COVID-19

Some members of the public are threatening RCMP by claiming to have COVID-19 and coughing on them.

25 new cases Tuesday in Alberta, provincial total at 1,373

Premier Jason Kenney to provide more information later in the evening

Special City Council meeting discusses potential curfew for City of Wetaskiwin

City of Wetaskiwin’s state of emergency has been renewed and no curfew will be implemented.

A message from the publisher

In good times and bad the Pipestone Flyer been here to provide valuable and trustworthy news.

Stettler couple brightens up the community with online Sunday afternoon sing-alongs

Doug and Shirley McKay play a variety of favourite tunes at 2 p.m. via Facebook

WATCH: Update from Prime Minister Trudeau

April 8 briefing from Ottawa

COVID-19 world update: 6.6 million U.S. jobless claims; alcohol sales banned in Bangkok

Comprehensive digest of coronavirus news items from around the world

Most Read