Air Canada says post-COVID ‘revenge travel’ slowing as profits fall
June 20, 2024 ctn_admin
(Global / Canadian Press, May 2024) – Air Canada lost $81 million in its first quarter, falling below analysts’ expectations even as revenue and capacity ramped up.
Canadians’ diminishing appetite for post-pandemic travel yielded thinner profit margins on fares, while a 21 per cent year-over-year rise in labour costs drove up overall expenses, the company said.
“As expected, pent-up demand and ‘revenge travel’ factors are slowing over time,” said Mark Galardo, head of revenue and network planning, on a conference call with analysts Thursday.
“Winter is challenging every year,” added CEO Michael Rousseau, referring to what is traditionally the toughest quarter for North American carriers.
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