06:59 AM EDT, 07/22/2024 (MT Newswires) -- Air Canada ( ACDVF ) on Monday released preliminary second-quarter results that underperformed last year and lowered its 2024 financial and capacity guidance.

Air Canada ( ACDVF ) booked operating revenue of about $5.5 billion in the second quarter on 6.5% increased operated capacity year-over-year, as compared to about $5.4 billion in the same quarter last year. It also had operating income of $466 million, with an operating margin of 8.4%, as compared to $802 million in the year-ago quarter.

On the 2024 outlook, with ASM capacity the airline is now forecasting 5.5-6.5% increase versus 2023, versus prior guidance of 6-8% increase versus 2023. With Adjusted CASM, it now forecasts 2.5-3.5% increase versus 2023 compared to prior guidance of 2.5-4.5% increase versus 2023. And with Adjusted EBITDA it now forecasts $3.1 to $3.4 billion compared to prior guidance of $3.7 to $4.2 billion.

Air Canada ( ACDVF ) said the updated 2024 adjusted EBITDA guidance range is largely driven by the lower yield environment, lower-than-expected load factors for the second half of the year and competitive pressures in international markets. It also reflects the company's assumptions including those relating to the price of jet fuel and a weakened Canada dollar against the US dollar.

In a statement it said: "The updated 2024 capacity guidance range accounts for sustained supply chain pressures, evolving market conditions and ongoing geopolitical issues. The updated 2024 adjusted CASM range includes the impact of the revised ASM capacity guidance range. Air Canada ( ACDVF ) is effectively managing costs through productivity, cost reductions and other cost discipline initiatives."

It added: "Air Canada ( ACDVF ) continues to see a healthy demand environment. The second quarter operating revenues would represent a record for a second quarter, with load factors remaining above historical averages.

Air Canada ( ACDVF ) will provide additional details when it releases its final second-quarter results on Aug. 7.