Like WestJet, Air Canada sees Q3 profits dip on rising fuel prices

AC

Air Canada saw its third-quarter profit drop compared with a year ago amid rising fuel prices as operating revenue climbed 11 per cent.

The airline reported a profit of $645 million or $2.34 per diluted share for the quarter, which ended Sept. 30.

That's compared with a profit of $1.72 billion or $6.22 per diluted share a year ago, when the company benefited from an income tax recovery of $758 million.

WestJet told the same story yesterday in its Q3 earnings report, blaming costly fuel for tanking profits.

Air Canada's operating revenue totalled nearly $5.42 billion, up from $4.88 billion.

On an adjusted basis, Air Canada says it earned $2.03 per diluted share for the quarter, down from an adjusted profit of $3.33 per diluted share in the same quarter last year.

Analysts on average had expected a profit of $2.09 per share for the quarter, according to Thomson Reuters Eikon.