MONTREAL — Air Canada’s fourth-quarter revenue and adjusted earnings came in ahead of analyst estimates, as the Montreal-based airline posted record-high annual revenue for 2017.
Its adjusted net income was $61 million, or 22 cents per share for the quarter — ahead of analyst estimates of 14 cents per share, according to Thomson Reuters data.
The airline’s operating revenue was $3.82 billion in the fourth quarter, up from $3.43 billion a year earlier and above the estimate of $3.745 billion.
Net income was $8 million or two cents per share for the three months ended Dec. 31, which was an improvement over a 2016 fourth-quarter loss of $179 million but lower than expected.
Analysts had estimated 15 cents per share of net income.
“Overall, we liked what we saw in the Q4 results,” wrote analyst Walter Spracklin of RBC Dominion Securities in a note to clients.
He added that Air Canada’s new guidance shows its costs will be higher in the first quarter and full year than the RBC estimate, and includes a number of one-time costs.
Spracklin said analysts would be looking for more information about management’s margin expectations for 2018, which weren’t mentioned in the press release.
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