Latest news with #Galardo
Yahoo
30-07-2025
- Business
- Yahoo
Air Canada shares slide over 10% as earnings miss, U.S. travel demand stays weak
Shares of Air Canada ( fell over 10 per cent on Tuesday, after the airline's quarterly earnings missed expectations. 'This second quarter was not business as usual,' said Mark Galardo, executive vice-president and chief commercial officer. 'We faced significant economic and geopolitical uncertainty,' Galardo added, referencing 'an evolving geopolitical landscape affecting the Middle East and India," increased competition in China, currency fluctuations and weakened demand for transborder travel. The airline continues to see lower demand for trips to the U.S., with revenue dropping 11 per cent on eight per cent less capacity, says president and CEO Michael Rousseau. According to Statistics Canada, Canadian return trips by air from the U.S. declined throughout the first five months of 2025, dropping 14 per cent year-over-year in April and 24.2 per cent in May. On an adjusted basis, Air Canada earned a net income of $207 million in its second quarter, compared to $369 million in the same period last year. Its adjusted earnings are 60 cents per diluted share, down from 98 cents per share last year. Air Canada shares closed $2.70 or 12.25 per cent lower at $19.34 on the Toronto Stock Exchange on Tuesday. In a note, RBC Dominion Securities analyst James McGarragle took a neutral view on the results, saying that the broader narrative of demand recovery remains intact. The company has expanded its international network, with transatlantic and Latin American markets seeing revenue growth of five per cent and 11 per cent, respectively, Galardo says. Demand is also growing during off-peak seasons in Southern Europe, as travellers seek milder temperatures and lesser crowds. Meanwhile, National Bank analyst Cameron Doerksen says he's cautious of the near-term risk of a potential strike in mid-to-late August. As of July 28, Air Canada flight attendants began voting on whether to give a strike mandate to the Air Canada component of the Canadian Union of Public Employees, which represents more than 10,000 flight attendants. The vote runs until Aug. 5. 'Such a vote is a normal step in the negotiation process and does not mean any disruption will take place,' Rousseau said, adding that the company remains 'focused on what we can control,' such as managing costs, and supply and demand. Sign in to access your portfolio
Calgary Herald
30-07-2025
- Business
- Calgary Herald
Air Canada shares plunge as decline in travel to U.S. hits bottom line
The trans-border market's weaker performance partly reflected the impact of increased foreign exchange volatility leading to a softer Canadian dollar versus the U.S. dollar. It was also affected by geopolitical and macroeconomic concerns as a result of actions, statements and uncertainty surrounding U.S. tariffs and related countermeasures, both of which negatively affected travel demand, it said. In response, Air Canada reduced its capacity in the trans-border market in the second quarter and first six months of 2025, it said. 'We are closely monitoring the state of the Canada-U.S. sector, where we see a decrease in overall market capacity,' said Galardo. He said passenger revenues from trans-border travel declined 11 per cent to $961 million in the second quarter and are down eight per cent at $1.95 billion for the year so far compared to 2024. Domestic travel, on the other hand, is experiencing capacity growth as assets are redeployed from the U.S. routes, said Galardo. 'We kept a strong and steady presence and offered more options for travellers to explore the country, increasing capacity on key leisure destinations,' he said. Domestic passenger revenues grew three per cent year over year to $1.38 billion in the second quarter. The airline attributed the growth to the year-over-year increase in operated capacity and traffic, partially offset by lower yields. Galardo said they continue to witness strong demand for their international network through the end of the year and into early Q1 of 2026. 'Booking trends continue to evolve,' he said as fall and early winter periods see greater relative strength as opposed to historical norms. BMO Capital Markets transportation analyst Fadi Chamoun said revenue per available seat mile (RASM) was better than expected and booking trends appear positive judging by advanced ticket sales that are two per cent above forecast. Royal Bank of Canada analyst James McGarragle said the broader narrative of demand recovery and operational realignment remains intact despite the modest cost-related headwinds in the quarter. Air Canada maintained the 2025 full year guidance it provided in May. National Bank analyst Cameron Doerksen said he remains positive on Air Canada shares over the longer term, but does note some near-term risks that warrant caution, notably negotiations with the flight attendants and related strike risk potentially later in August. 'Although the macroeconomic backdrop remains uncertain and a risk for the stock, demand for air travel remains stable,' Doerksen said in a note. Bookmark our website and support our journalism: Don't miss the business news you need to know — add to your bookmarks and sign up for our newsletters here.
Yahoo
29-07-2025
- Business
- Yahoo
Air Canada shares slide over 10% as earnings miss, U.S. travel demand stays weak
Shares of Air Canada ( fell over 10 per cent on Tuesday, after the airline's quarterly earnings missed expectations. 'This quarter was not business as usual,' said Mark Galardo, executive vice-president and chief commercial officer. 'We faced significant economic and geopolitical uncertainty,' Galardo added, referencing 'an evolving geopolitical landscape affecting the Middle East and India," increased competition in China, currency fluctuations and weakened demand for transborder travel. The airline continues to see lower demand for trips to the U.S., with revenue dropping 11 per cent on eight per cent less capacity, says president and CEO Michael Rousseau. According to Statistics Canada, Canadian return trips by air from the U.S. declined throughout the first five months of 2025, dropping 14 per cent year-over-year in April and 24.2 per cent in May. On an adjusted basis, Air Canada earned a net income of $207 million in its second quarter, compared to $369 million in the same period last year. Its adjusted earnings are 60 cents per diluted share, down from 98 cents per share last year. In a note, RBC Dominion Securities analyst James McGarragle took a neutral view on the results, saying that the broader narrative of demand recovery remains intact. Meanwhile, National Bank analyst Cameron Doerksen says he's cautious of the near-term risk of a potential strike in mid-to-late August. As of July 28, Air Canada flight attendants began voting on whether to give a strike mandate to the Air Canada component of the Canadian Union of Public Employees, which represents more than 10,000 flight attendants. The vote runs until Aug. 5. 'Such a vote is a normal step in the negotiation process and does not mean any disruption will take place,' Rousseau said, adding that the company remains 'focused on what we can control,' such as managing costs, and supply and demand. As at 11:25 a.m. ET Tuesday, Air Canada's stock was trading on the Toronto Stock Exchange at $18.99 per share, down $3.05 or 13.84 per cent.
Hamilton Spectator
29-07-2025
- Business
- Hamilton Spectator
Air Canada sees revenue growth in international markets beyond U.S.
Air Canada says it has been shifting capacity toward high-demand international markets as Canadians' appetite for cross-border travel continues to lag. Passenger revenues from the airline's U.S. transborder segment dropped 11 per cent during the three months ended June 30 compared to last year, to $961 million, while domestic, Atlantic and Latin American markets saw a boost. 'This second quarter was not business as usual,' chief commercial officer Mark Galardo told analysts on a conference call Tuesday. 'We navigated through a period of significant economic and geopolitical uncertainty and we contended with reduced demand for transborder travel, an evolving geopolitical landscape affecting the Middle East and India, increased competition in China-Hong Kong and some currency fluctuations.' The Trump administration's tariff threats, immigration crackdowns and musings about annexing Canada have prompted many Canadians to shun U.S. travel. The decline has shown up in Statistics Canada data. Last month, the agency said Canadian-resident returns from the United States by air declined more than 24 per cent in May compared to the same month a year earlier, continuing a five-month downward trend. Returning automobile traffic was down 38 per cent year-over-year in May. 'We made the right early calls to match our capacity to the evolving demand landscape, and our diversified network and disciplined capacity management supported strong performance in international overall,' said Galardo. Domestic routes saw a three per cent boost in revenues during the quarter. 'We kept a strong and steady presence and offered more options for travellers to explore the country, increasing capacity on key leisure destinations,' Galardo said. Capacity has also shifted from the transborder market to sun destinations going into the second half of the year. Galardo added the airline is closely monitoring the Canada-U.S. sector and has the flexibility to adjust to changing market conditions. Air Canada shares dropped almost 15 per cent in afternoon trading on the TSX to $18.82 after it reported a drop in second-quarter profits that missed analyst expectations. The airline reported net income of $186 million in the period, down from $410 million in the same quarter last year. Air Canada says that on an adjusted basis, it had a net income of $207 million in the quarter compared with $369 million in the same quarter last year. Adjusted earnings worked out to 60 cents per diluted share in the quarter, compared to 98 cents per share last year. Analysts on average had expected an adjusted profit of 72 cents per diluted share, according to LSEG Data & Analytics. Passenger revenues in the quarter amounted to $5.03 billion, up one per cent from last year on 2.5 per cent capacity growth. Despite the challenges, the airline reaffirmed its financial guidance for the year that it issued in May. Results were slightly below expectations on higher-than-expected costs but overall fairly neutral, said RBC analyst James McGarragle in a note. 'We are taking a neutral view on the results, as the broader narrative of demand recovery and operational realignment remains intact despite the modest cost-related headwinds in the quarter.' This report by The Canadian Press was first published July 29, 2025. Companies in this story: (TSX: AC)
Cision Canada
09-07-2025
- Business
- Cision Canada
Air Canada Further Expands its Latin America Network; Resumes Flights to Lima, Adds Three New Hotspot Destinations Français
Four non-stop flights weekly to Lima, two each from Montreal and Toronto First Canadian carrier offering non-stop service- to Mexico's buzzworthy Puerto Escondido from Toronto and a new route to Tepic, Riviera Nayarit from Vancouver Weekly non-stop flights from Montreal to Belize MONTREAL, July 9, 2025 /CNW/ - Air Canada today announced it is further expanding its winter 2025-26 network by resuming non-stop service to Lima, Peru with twice weekly flights from both Montreal and Toronto. The airline is also adding three new routes to Central America and Mexico including, Montreal-Belize, Toronto-Puerto Escondido*, and Vancouver-Tepic, Riviera Nayarit*, building on its recent Latin America expansion announcement. Flights are now available for sale at through Air Canada Contact Centres, and via travel agents. "Air Canada is further diversifying its global network this winter under its New Frontiers Strategy by capitalizing on strong leisure demand to sought-after vacation destinations in South and Central America and in Mexico's Oaxaca and Pacific coast areas. Our new flights are designed to provide easy connections for both Canadian and European travellers, as well as to take advantage of cargo opportunities in the region," said Mark Galardo, Executive Vice President & Chief Commercial Officer, and President, Cargo at Air Canada. "Customers will have even more compelling choices when planning vacation travel this winter. From Peru's rich history and archaeological ruins, the legendary Belize Barrier Reef, or Mexico's vibrant and rapidly emerging hidden gem vacation spots, Air Canada is proud to bring new and exciting destinations for our customers to explore. We look forward to welcoming you onboard our award-winning airline soon," concluded Mr. Galardo. Air Canada's newest Mexico routes are opening doors to some of the country's buzzworthy and under the radar vacation destinations. Puerto Escondido, nestled along Oaxaca's stunning Pacific coast, is a laid-back surf haven renowned for its golden beaches and extraordinary waves. With new direct flights from Toronto, this bohemian paradise will now be within easy reach for Canadian travellers seeking off-the-beaten-path charm. On Mexico's western coast, Air Canada's new Vancouver-Tepic, Riviera Nayarit service opens a fresh gateway to the Riviera Nayarit—timed perfectly with the completion of a new highway linking Tepic to Puerto Vallarta in October 2025. Oceanfront gems such as artistic San Pancho, surf-friendly Sayulita, and upscale Punta Mita will be within a convenient 30-minute to one-hour drive from Tepic's airport. This new route offers travellers an alternative point of access to explore the vibrant landscapes, pristine beaches, and rich cultural tapestry that make Nayarit one of Mexico's most captivating regions. This winter, Air Canada will offer over 80,000 weekly seats on more than 55 daily flights to 52 destinations in Latin America and the Caribbean, representing the greatest number of sun destinations the airline has served. Air Canada's flights to Peru: Air Canada's new Central America and Mexico winter routes: *The sale of air tickets in these routes is subject and condition to the prior authorization of the government of Mexico. About Air Canada Air Canada is Canada's largest airline, the country's flag carrier and a founding member of Star Alliance, the world's most comprehensive air transportation network. Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and Internationally on six continents. It holds a Four-Star ranking from Skytrax. Air Canada's Aeroplan program is Canada's premier travel loyalty program, where members can earn or redeem points on the world's largest airline partner network of 45 airlines, plus through an extensive range of merchandise, hotel and car rental partners. Through Air Canada Vacations, it offers more travel choices than any other Canadian tour operator to hundreds of destinations worldwide, with a wide selection of hotels, flights, cruises, day tours, and car rentals. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using Air Canada's passenger and freighter aircraft. Air Canada's climate-related ambition includes a long-term aspirational goal of net-zero greenhouse gas emissions by 2050. For additional information, please see Air Canada's TCFD disclosure. Air Canada shares are publicly traded on the TSX in Canada and the OTCQX in the US. Media Resources: Photos Videos B-Roll Articles SOURCE Air Canada
