Aug 03, 2020 (Baystreet.ca via COMTEX) -- Air Canada's situation is growing dire.
Canada's flagship airline announced a $1.75 billion loss in its latest quarter as revenue evaporated, prompting the carrier's management to renew pleas for the federal government to ease COVID-19 travel restrictions.
"Today's reported declines in revenue of nearly 90 per cent and in passengers of over 96 per cent, should reinforce the tremendous urgency for governments in Canada to take reasonable steps to safely reopen our country and restore economic activity," said Air Canada Chief Executive Officer Calin Ronvinescu in a news release.
The Montreal-based airline says it lost $6.44 per diluted share, compared with net income equaling $1.26 per share or $343 million a year earlier. Revenue for the three months ended June 30 were $527 million, down from $4.74 billion in the second quarter of 2019. Passenger revenues fell to $207 million while cargo revenues increased 52% to $269 million.
Air Canada was expected to lose $1 billion or $3.96 per share on $436.3 million of revenues, according to financial markets data firm Refinitiv. The country's largest airline says it has access to $9.12 billion of cash after raising $5.5 billion in new equity, debt and aircraft financings since March of this year.
The airline cut spending in large part by reducing management and frontline workers to save $1.3 billion, permanently retiring 79 aircraft representing more than 30% of its overall fleet, suspending some domestic routes and cutting its network capacity by 92%.
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