Air Canada narrowed its second-quarter net loss to C$46 million from last year's C$318 million.

The carrier reported 12 percent year-over-year growth in passenger revenue, thanks to healthy traffic (up 6 percent) and strong yields (up 5 percent). Air Canada attributed yield improvements to fare growth, additional fuel surcharges and growth in premium traffic. Traffic grew in all regions, except for domestic services, which dropped nearly 1 percent year over year.