Air Canada’s third-quarter revenue dropped 5%, with profit falling to C$264 million, following a three-day flight attendant strike in August.
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Air Canada AC 1.18%increase; green up pointing triangle is riding a rebound in premium and international travel to move past the fallout from its recent labor disruption that impacted third-quarter results.
Executives at the Canadian flagship airline said Wednesday on an earnings call that the return in demand is expected to carry through the U.S. Thanksgiving holiday, particularly to transatlantic destinations, while winter bookings for Latin America are tracking ahead of last year. The gains are being driven by network expansion and vacation package offerings.
“Booking patterns rebounded soon after the disruption ended, underscoring brand strength and consistency in customer behavior,” Chief Commercial Officer Mark Galardo said.
Roughly 10,000 flight attendants walked off the job in August seeking better wages and compensation. The disruption lasted three days, despite calls from Canada’s Industrial Relations Board to return to work, forcing the carrier to ground all flights and temporarily withdraw its financial targets.
On Tuesday, after the markets closed, Air Canada disclosed the financial impact to results, with a 5% drop in revenue, while profit fell to C$264 million, or the equivalent of $186.5 million.
Excerpt from WSJ
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