Skift Take
Lower fuel and oil costs have a very direct impact on the travel industry, raising profits for airlines but lowering the number of hotel stays for oil company employees and executives.
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Air Canada reported an unexpected first-quarter profit as the country’s largest carrier benefited from falling fuel prices and rising traffic.
The adjusted profit was 30 Canadian cents a share, Air Canada said in a statement Friday. That was counter to a loss of 19 Canadian cents that analysts expected, according to the average of estimates compiled by Bloomberg.
Revenue climbed 2.8 percent from a year earlier to C$2.86 billion ($2.29 billion), compared with an average estimate of C$3.28 billion. Traffic rose 7.7 percent, while the cost per available seat mile declined 3.3 percent.
©2016 Bloomberg L.P.
This article was written by Frederic Tomesco from Bloomberg and was legally licensed through the NewsCred publisher network.
Tags: air canada, earnings
Photo Credit: An Air Canada aircraft takes off after snowfall at Heathrow airport in London. Neil Hall / Reuters