Nov 4 (Reuters) - Air Canada ( ACDVF ) reported a lower
third-quarter profit on Tuesday, as a labor disruption that
forced the cancellation of thousands of flights and waning
demand travel to and from U.S. weighed on results.
Cross-border travel between Canada and the U.S. has slowed
significantly this year after President Donald Trump's steep
tariffs on Canadian imports sparked a widespread backlash,
including cancellations of planned visits south of the border.
In the third quarter, the Canadian carrier also struggled
with a major shutdown after nearly 10,000 flight attendants
walked off the job in a high-profile strike demanding better
wages and compensation for unpaid "ground work".
The four-day walkout, which defied a government back-to-work
order, led to the cancellation of thousands of flights and
grounded most of Air Canada's ( ACDVF ) fleet, severely disrupting
operations and denting revenue.
Last month, the airline trimmed its financial expectations
for the quarter and the full year to account for a hit from the
strike.
On Tuesday, it also tightened the range for its 2025 core
profit forecast.
Canada's largest carrier now expects full-year adjusted
earnings before interest, taxes, depreciation and amortization
(EBITDA) to be between C$2.95 billion ($2.10 billion) and C$3.05
billion, compared with its prior forecast of C$2.9 billion to
C$3.1 billion.
Air Canada ( ACDVF ) said it recorded a one-time pension past service
cost and other labor-related charges of C$173 million in the
quarter, including ones related to the tentative agreement
reached with Canadian Union of Public Employees.
The company reported an adjusted profit of C$223 million, or
75 Canadian cents per share, for the quarter, compared with
C$969 million, or C$2.57 per share, a year earlier.
Total operating revenue was C$5.77 billion, compared with
C$6.11 billion in the year-ago period.
($1 = 1.4024 Canadian dollars)