Originally Posted by
warrens
What excess profits? Air Canada made basically no money in Q1.
Worse, AC has some long-term financial challenges ahead because of Covid-era debts, and we all saw that a lot of routes were already stuffed full through most of Q1 so I have to wonder where significant growth will come from without further increasing fares or adding more profitable routes, both of which are challenging to do.
AC is definitely not making money like the US carriers. The kind of raises that we have seen in the US would be a pretty big cost to AC and impact the bottom line. Without knowing what is happening with WS in terms of finances, it is hard to know where this goes based on the WS agreement. Q2 and Q3 are going to very informative in terms of where AC sits in a time of very full aircraft. If they aren't making money with the present labour deals, they will be very in the red should the labour groups get significant raises.