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Air Canada profit disappoints as weak loonie takes toll

Air Canada profit disappoints as weak loonie takes toll

Old Feb 12, 14, 7:04 am
  #1  
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Air Canada profit disappoints as weak loonie takes toll

The flights I booked last week didn't have the currency surcharge yet... Good to those that bought their stock at the beginning of 2013 as their share price tripled.

http://business.financialpost.com/20...ie-takes-toll/

Air Canada delivered a fourth quarter result Wednesday that fell well short of expectations as the weak loonie took its toll on airline.

The country's largest carrier also warned the weak Canadian dollar and harsh winter weather persisted into the first three months of 2014, and as a result, it expected its first quarter earnings to be below where they were in 2013.

Air Canada reported an adjusted net income of $3-million, or 1 a share, up from a loss of $5-million, or 2 a share, a year ago.

While that was an improvement year-over-year, it fell well short of the 11 a share expected by analysts, according to Bloomberg estimates.

Last edited by tcook052; Feb 12, 14 at 9:17 am Reason: posting articles in entirety against TOS
doesun is offline  
Old Feb 12, 14, 9:21 am
  #2  
 
Join Date: Nov 2013
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We'll see if the weather and loonie tell the whole story.

I'd like to think they screwed a lot of people recently with rouge,the HDs, devaluation of their FF advantages, etc... For a quick short term cash extraction, and now the market is readjusting.

Takes years to build a brand, much faster to break it.
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Old Feb 12, 14, 10:34 am
  #3  
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When things look up it is because management walks on water.

Such as, government gave them a delay on pension fund. Or, the dollar went up.

When things look worse it is always because of some factor outside their control.
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Old Feb 12, 14, 10:50 am
  #4  
 
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All about the spin...

http://www.cbc.ca/news/business/air-...tory-1.2533756

CBC online headline:

"Air Canada's 2013 results best in its 77-year history
Chief executive Calin Rovinescu calls 2013 a 'watershed year' for the airline"

"Air Canada reports the best financial results in its 77-year history in 2013 by several financial measures, despite missing analyst forecasts in the fourth quarter due to severe weather and a weaker dollar. 10:28 AM ET"
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Old Feb 12, 14, 11:09 am
  #5  
 
Join Date: Jul 2005
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AC has added so much capacity. I've always thought it's too much in current times.
The tide might be turning on AC - slight RASM drop offset by cost reductions but there's only so far you can cut costs. Labour negotiations on the horizon ... and that's never delightful.

Might be some money to be made by shorting AC if the stock can crawl back to the $7.25 range.
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Old Feb 12, 14, 4:03 pm
  #6  
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Originally Posted by CloudsBelow View Post
Might be some money to be made by shorting AC if the stock can crawl back to the $7.25 range.
http://www.cbc.ca/news/business/air-...ults-1.2533756

Air Canada stock dives 20% on record 2013 results
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Old Feb 12, 14, 7:32 pm
  #7  
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Originally Posted by CloudsBelow View Post
AC has added so much capacity.
WS has been adding proportionally more.
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Old Feb 13, 14, 11:19 am
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Join Date: Jul 2005
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Originally Posted by The Lev View Post
WS has been adding proportionally more.
How's their RASM with the added seats? Assuming slipping as well?
Both airlines claim net new travellers are filling additional seats, Feb and March will be aided by school breaks, might be some lean times in Apr/May before summer season heats up.
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