Chief Business Officer Mark Galardo said on Friday morning earnings call that demand for cross-border travel in the first quarter fell, but so far “the company’s demand for the U.S. remains stable.”
“At the moment, we have not cut any critical business flights on critical routes, such as Toronto-New York, Toronto-Chicago, etc.,” Galado said. “We still have a very diverse schedule that can facilitate company recovery.”
Nevertheless, the “uncertainty related to U.S. tariffs and related countermeasures” in the first quarter, the Canadian dollar was weaker compared to the U.S. dollar, which mainly affected the demand for U.S. route services, especially air services for U.S. leisure destinations, especially with U.S. leisure destinations.
“In the U.S., our capacity is down roughly, depending on the month, year by year,” Galado said. “I think we’re going to see continued in the third quarter or even the fourth quarter.”
According to carrier data, U.S. cross-bus revenue for the quarter was $991 million, a 5% decrease year-on-year. The load factor dropped by about 2 percentage points during this period. According to Air Canada, Air Canada, “Lower crossover capability also leads to a year-on-year decrease in revenue and partially offset by higher yields across the entire crossover network.”
“We have three types of customers: the Canadian school opening point, our school opening point, and then the company traffic,” Galado said. “Company traffic has been stable. The traffic point to Canada in the United States has dropped slightly, but that’s actually the point where Canada starts, and we’re seeing a drop in teenagers.” [percentages]. ”
Air Canada Q1 indicator
Air Canada’s first-quarter passenger revenue was CAD 4.3 billion, down 3% year-on-year, and total revenue was CAD 5.2 billion, down 1%. The company’s net loss was C$102 million, while the net loss was C$81 million.
Carrier capacity fell 0.4% year-on-year during the quarter. The capacity of the US cross-border sector fell by 4.4%, while the Canadian country’s content volume increased by 4.4%. Fuel costs are close to CAD 0.98 per liter.
The second quarter guidance included an estimated 2% increase in capacity to 2.5%. Air Canada also updated its full-year outlook for 2025 “to illustrate the latest trends in business environment and fuel price expectations.” Now, full-year capacity is expected to increase by 1% to 3% with 2024, while previous guidance has increased by 3% to 5%.
