Air Canada's passenger revenue increased 8.1 percent year
over year to C$3.1 billion in the first quarter as the carrier entered its
third year of significant capacity growth.
For the quarter, capacity increased 15.4 percent year over
year as traffic increased 14 percent, pushing load factor down a percentage
point to 80.1 percent. Air Canada president and CEO Calin Rovinescu noted that
capacity growth—a result of Air Canada's widebody fleet expansion, including
new service during the quarter between Montreal and Shanghai on a Boeing 787
Dreamliner aircraft—would begin to slow next year.
Passenger revenue from Air Canada's Business Class cabins rose
10 percent year over year for the quarter, passenger airlines president
Benjamin Smith said.
Air
Canada reported a net loss of C$37 million for the quarter, compared with a net
income of C$101 million in the first quarter of 2016. Operating expenses increased
16 percent year over year due to increased capacity, and Air Canada also
incurred C$30 million in expenses from a fine related to a cargo investigation
by the European Commission. The carrier is challenging that fine.