Air Canada says loss widens to $400 million in first quarter
May 8, 2009, 6:20 am
#1
A FlyerTalk Posting Legend
Original Poster
Join Date: May 2002
Location: YEG
Programs: HH Silver
Posts: 56,466
Air Canada says loss widens to $400 million in first quarter
http://www.google.com/hostednews/can...oBUeanIJn9QrXQ
MONTREAL — Air Canada (TSX:AC.B) said Friday weak economic conditions led to a decrease in passenger traffic during the first three months of 2009, while foreign exchange losses contributed to a widening of the company's loss during the quarter.
The Montreal-based air carrier reported a loss of $400 million or $4 per share for the quarter, deepening year-earlier losses of $288 million or $2.88 per share. The company said foreign exchange losses totalled $101 million for the period, while a further $125 million was included as a provision for cargo investigations.
<snip>
Chief executive Calin Rovinescu said a drop in fuel prices has provided some relief for the airline industry as a whole, but conceded Air Canada has a difficult few months ahead. Still the newly-minted CEO, who has only been at the helm for five weeks, sounded an optimistic note.
"The global economy will inevitably rebound," he said.
MONTREAL — Air Canada (TSX:AC.B) said Friday weak economic conditions led to a decrease in passenger traffic during the first three months of 2009, while foreign exchange losses contributed to a widening of the company's loss during the quarter.
The Montreal-based air carrier reported a loss of $400 million or $4 per share for the quarter, deepening year-earlier losses of $288 million or $2.88 per share. The company said foreign exchange losses totalled $101 million for the period, while a further $125 million was included as a provision for cargo investigations.
<snip>
Chief executive Calin Rovinescu said a drop in fuel prices has provided some relief for the airline industry as a whole, but conceded Air Canada has a difficult few months ahead. Still the newly-minted CEO, who has only been at the helm for five weeks, sounded an optimistic note.
"The global economy will inevitably rebound," he said.
May 8, 2009, 9:44 am
#2
A FlyerTalk Posting Legend
Original Poster
Join Date: May 2002
Location: YEG
Programs: HH Silver
Posts: 56,466
http://uk.reuters.com/article/market...45825720090508
OTTAWA, May 8 (Reuters) - Air Canada (ACa.TO: Quote, Profile, Research) said on Friday that it is working to avoid filing for bankruptcy protection, a move that analysts had speculated the country's largest airline would need as it faces a raft of challenges.
"Our objective is to avoid any filing," said Chief Executive Calin Rovinescu on a conference call with analysts. "We need to have labor stability as we put the financing structures in place to avoid a filing."
OTTAWA, May 8 (Reuters) - Air Canada (ACa.TO: Quote, Profile, Research) said on Friday that it is working to avoid filing for bankruptcy protection, a move that analysts had speculated the country's largest airline would need as it faces a raft of challenges.
"Our objective is to avoid any filing," said Chief Executive Calin Rovinescu on a conference call with analysts. "We need to have labor stability as we put the financing structures in place to avoid a filing."
May 8, 2009, 12:40 pm
#5
Join Date: Apr 2002
Location: YXE
Posts: 3,050
Yeah Calin....but the airline couldn't even make money during a period of almost unprecedented economic growth in Canada.
Its good to have an upbeat attitude, but is a bankruptcy filing really avoidable? And with all the divestable assets gone (ie: Aeroplan, Jazz, etc.), who would want even to provide DIP financing?
A year from now, IMHO, its really gonna be a different world in the Canadian airline industry.
Its good to have an upbeat attitude, but is a bankruptcy filing really avoidable? And with all the divestable assets gone (ie: Aeroplan, Jazz, etc.), who would want even to provide DIP financing?
A year from now, IMHO, its really gonna be a different world in the Canadian airline industry.