Latest news with #MarkGalardo
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
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
14-07-2025
- Business
- Cision Canada
Air Canada and ITA Airways Celebrate Significant Partnership Milestone with New Codeshare Agreement Enhancing Connectivity Between Canada, Italy and Beyond Français
Enhanced partnership unlocks more than 30 one-stop itineraries with seamless connections Each airline's code will be added to 10 routes beyond their respective hubs in Rome and Toronto Activating codeshare is a significant milestone as ITA Airways' prepares for entry into Star Alliance MONTREAL and ROME, July 14, 2025 /CNW/ - Air Canada and ITA Airways today announced a significant milestone in their partnership with a codeshare agreement that provides customers more convenient travel options when flying between Canada and Italy, and beyond. "We're thrilled to expand our partnership with ITA Airways through our new codeshare agreement that complements our robust network to Italy. This deepening of ties will allow customers travelling on Air Canada to Rome-Fiumicino to conveniently book and seamlessly connect to ten popular destinations across Italy, Africa, Israel and Albania. Likewise, ITA Airways customers arriving in Toronto will benefit from access to 10 key Canadian and U.S. cities across our network," said Mark Galardo, Executive Vice President and Chief Commercial Officer, and President, Cargo at Air Canada. "With work underway to facilitate ITA Airways' entry into Star Alliance, we are developing significant partnership synergies. This will form the foundation for a strong, long-term relationship between our two flag-carrying airlines." "The codeshare agreement with Air Canada is a great step forward for our growth strategy," said Joerg Eberhart, Chief Executive Officer and General Manager of ITA Airways. "This partnership improves connectivity for our passengers traveling between Italy and North America, our first market beyond Italy, serving both leisure and business travelers. Moreover, it enables us to offer seamless connections for passengers of Italian origin residing in Canada and the United States, facilitating their journeys to Italy and beyond, while providing them the opportunity to fully experience the excellence of Made in Italy — a heritage that ITA Airways proudly represents as an ambassador worldwide." Under the agreement, Air Canada will place its AC code on select routes operated by ITA Airways from Rome-Fiumicino. These include five popular destinations in Italy: Lamezia Terme, Palermo, Catania, Florence and Bari; three points in Africa, including Cairo, and Tunis and Algiers; as well as Tirana and Tel Aviv (the latter temporarily suspended). ITA Airways will place its AZ code on selected routes operated by Air Canada from Toronto Pearson, these include: Montreal, Ottawa, Vancouver, Edmonton, Calgary and St. John's; and selected services from Canada to the United States: Boston, Orlando, Dallas, and Fort Lauderdale. * Routes to/from Tunis and Algiers are subject to governmental approval Sales of codeshare tickets are available as of today, for travel starting on July 21 st. The airlines are working towards implementing reciprocal earning and redemption capabilities for their respective loyalty programs. ITA Airways is also in the process of joining the Star Alliance network as a full member, with work underway to facilitate full membership expected in early 2026. This partnership complements Air Canada's growing network to Italy. This summer, Air Canada will operate up to 39 weekly flights and over 13,000 weekly seats to Italy. In May, it launched a new route between Montreal and Naples, the gateway to the Amalfi coast. Naples is the airline's fourth non-stop connection between Canada and Italy in addition to Rome, Milan, and Venice. As well, Air Canada offers intermodal rail connections with Trenitalia, the largest train operator in Italy, with high-speed, regional, overnight and international train routes. Through these intermodal connections, customers will be able to travel to up to 30 onward destinations within Italy. In the current summer season, ITA Airways operates a total of 59 destinations, including 16 intercontinental, 27 international and 16 domestic routes. During the summer peak, the airline flies to 12 additional seasonal destinations in the Mediterranean — 3 domestic and 9 international — from Rome Fiumicino and Milan Linate. These seasonal destinations include the Balearic Islands (Ibiza, Majorca, Menorca), several Greek islands (Rhodes, Heraklion, Corfu, Zakynthos, Kefalonia), as well as the Italian islands of Lampedusa and Pantelleria. Furthermore, in addition to seasonal routes, ITA Airways has recently enhanced its offering to passengers, providing them with connections to over 100 additional destinations — both across Europe and on intercontinental routes—through codeshare agreements with five Lufthansa Group airlines: Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, and Air Dolomiti. 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. About ITA Airways ITA Airways is the Italian reference carrier. The Company is 59% owned by the Ministry of Economy and Finance and 41% by Deutsche Lufthansa AG. ITA Airways operates both passenger and cargo air transport services, providing Italy with high-quality connectivity to international destinations, supporting tourism and foreign trade, as well as domestic connectivity within the Country, also leveraging integrated mobility. Through strong digitization of processes to ensure the best possible experience and personalized services, ITA Airways places customer service at the core of its strategy. This is combined with a commitment to sustainability, which encompasses environmental aspects (such as a young, technologically advanced fleet to reduce environmental impact), social aspects (a strong focus on its employees and the communities in which it operates), and governance aspects (integrating sustainability into internal strategies and processes). Sign up for Air Canada news: Media Resources: Photos Videos B-Roll Articles SOURCE Air Canada
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
