Air Canada on Tuesday reported a first-quarter net loss of C$309 million,

an improvement from a net loss of C$341 million in the first quarter of 2014. Adjusted for special items, including foreign-exchange losses totaling C$408 million, the carrier's net income for the first quarter was C$122 million, up from an adjusted loss of C$132 million the year prior. Passenger revenue during the quarter increased 7 percent year over year to C$2.8 billion. First-quarter yield declined 4.2 percent, and passenger revenue per available seat mile declined 2.7 percent, largely a result of increased capacity of Air Canada's low-cost Rouge product. Total capacity during the first quarter increased 9.3 percent year over year as traffic increased 10.9 percent, leading to a 1.2 percentage point load factor increase to 81.5 percent.