Air Canada (AC) has lowered its full-year guidance ahead of its next financial results being released on August 7.
The Montreal-based airline now expects 2024 earnings of $3.1 billion to $3.4 billion, down from a previous forecast of $3.7 billion to $4.2 billion.
Management said the lowered guidance is due to low yields, less-than-expected load factors, and competition on international routes.
The lowered guidance was issued by Air Canada along with preliminary Q2 financial results.
The airline reported preliminary Q2 revenue of $5.5 billion, which was below the $5.65 billion consensus forecast of analysts.
Air Canada said it expects Q2 operating income of $466 million, down 42% from $802 million a year earlier.
The carrier also continues to be engaged in labour negotiations with its pilot’s union, which has been without a collective agreement since September 29, 2023.
The stock of Air Canada has declined 35% in the last 12 months and is down 64% over the past five years. The company’s shares currently trade at $16.65 each.
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