Air Canada’s (AC) stock fell 12% on July 29 after the Montreal-based carrier reported weak quarterly financial results that showed a continued decline in air travel.
The airline continues to see lower demand for trips to the U.S. as Canadians shy away from America, with revenue dropping 11% on 8% less capacity in this year’s second quarter.
Air Canada reported earnings per share (EPS) of $0.60 for Q2, down 39% from $0.98 a year earlier.
The quarterly profit fell short of the consensus expectation of analysts who had EPS of $0.72 penciled in for the company.
Revenue in the April through June quarter totaled $5.03 billion, up 1% from the same period of 2024 amid tepid capacity growth.
The poor results and decline in air travel demand sent AC stock down sharply. At the same time, Air Canada faces a potential labour disruption.
Air Canada’s flight attendants are voting on whether to give a strike mandate to the Canadian Union of Public Employees (CUPE), which represents them in collective bargaining.
The flight attendant’s vote runs until Aug. 5 of this year.
Analysts say the labour unrest adds to the uncertainty that is swirling around Air Canada and its performance for the remainder of this year.
AC stock is down 13% on the year and trading at $19.34 per share.
