Air Canada revenue boosted to a five-year high after the nation’s largest carrier reported third-quarter profit that beat analysts’ estimates due to progress in its plan to cut costs.
Shares rose 5.6 percent in Toronto after reaching the highest price since July 2008. The Montreal-based carrier shares more than tripled this year through this week compared with a 6.9 percent gain for the Standard & Poor’s/Toronto Stock Exchange Composite Index.
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Calin Rovinescu. Chief Executive Officer is attempting to reduce costs at Air Canada by roughly 15 percent in the medium term by employing the assistance of a higher-density aircraft, new maintenance agreements and the start of the Rouge leisure unit. Costs for every seat flown a mile, a measure of airline efficiency, are estimated to decrease as much as 2 percent this year.
The company has seen great process in its cost cutting plan, Rovinescu said today on a conference call. “We’re on a path to sustained profitability.”
Adjusted costs for every seat flown per mile decreased 3.4 percent in the quarter from a year earlier.