By Adriano Marchese
Air Canada is scheduled to report its first-quarter results Friday. Here is what you need to know.
REVENUE: The Canadian flagship airline is expected to report revenue of 5.28 billion Canadian dollars ($4.18 billion), according to FactSet, slightly ahead of the prior-year period when it reported revenue of $5.23 billion.
ADJUSTED LOSS: On a per-share basis, adjusted loss is expected to be C$0.52 a share.
The stock fell 37% in the quarter, and is currently trading at C$15.45 a share.
WHAT TO WATCH
-- U.S.-Canada travel: Investors will be keen to know what the demand trends have been for travel to and from the U.S. National Bank of Canada's Cameron Doerksen said in a report that along with tariff chaos-driven recession risks, demand trends on the U.S. transborder market have been a top investor concern for the Canadian airline industry and Air Canada. He said that while it appeared that there could have been a complete collapse, "Air Canada [is] publicly commenting that it is seeing bookings down 10% looking ahead in the next six months."
-- Demand: Doerksen thinks that weaker economic conditions could reduce demand for U.S. travel in general, which could heighten competition as well. Investors will want to look out for any adjustments on pricing or demand for travel.
-- Jet fuel costs: With jet fuel prices down, Doerksen says this could be a tailwind for the airline facing a slipping demand.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
May 08, 2025 14:54 ET (18:54 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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