Air Canada expects C$260m net loss in Q1

Washington DC
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Air Canada expects to record a Canadian dollar (C$) net loss of about $260 million ($253 million) in the first quarter of 2013, says the carrier in a preliminary earnings report it released to comply with regulations as it "explores a range of debt financing opportunities".

The Montreal-based carrier estimates its adjusted net debt was C$3.99 billion at the end of the first quarter, a decrease of C$246 million from the first quarter of 2012.

Air Canada expects to see an adjusted net loss of about C$143 million in the first quarter, narrowing from C$162 million in the first quarter of 2012.

The carrier expects to see an operating loss of C$106 million compared to C$274 million in the same quarter of 2012.

Flight cancellations and "operational challenges" at Air Canada's main Canadian hubs during the quarter caused a negative impact of about C$10 million, the airline says. It will also record an impairment charge of C$24 million in relation to Airbus A340-300 aircraft. The results were also affected by fewer business travellers and unfavourable exchange rates.

Capacity in the first quarter was 1.1% lower than it was in the first quarter of 2012.