Air Canada (TSX:AC) reported a smaller second-quarter loss as rising vaccination rates and easing travel restrictions accelerated the airline’s recovery.
The federal government in Ottawa recently announced that it will allow fully vaccinated U.S. tourists to enter the country beginning on August 9, after the COVID-19 pandemic forced the border’s closure for 16 months.
With global travel restrictions easing, Air Canada has announced its international summer schedule, resuming 17 routes and 11 destinations from its various hubs.
The Canadian carrier reported cash burn of about $8 million per day during the second quarter and forecast cash burn of between $3 million and $5 million a day for the current third quarter.
The airline’s net loss in the second quarter amounted to $1.17 billion, or $3.31 per share, compared with a loss of $1.75 billion, or $6.44 per share, a year earlier.
Air Canada’s operating revenue rose 58.8% to $837 million in the second quarter. Analysts had expected revenue of $848.2 million, according to Refinitiv data.
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