‘We’re not happy until you’re not happy.’That could sum up investor reaction to Air Canada’s latest financial numbers, who pushed the company’s shares down 2% even though it reported a 22% jump in its third quarter earnings.Canada’s flagship carrier reported a post-pandemic profit of $1.25 billion for the three months ended September 30 or 54% higher than analyst expectations. Operating revenues of $6.34 billion were up 19% from the third quarter of 2022 as travellers returned to Canada’s skies.Cash flow from operations — an indicator of a company’s ability to fund capital projects and growth — nearly quadrupled to $408 million from $118 million in the same quarter of last year.In a statement, the company said it faces future headwinds from geopolitical uncertainty, inflation and volatile fuel prices but it still expects its full year numbers to come in at the high end of its guidance..“Yet our demonstrated adaptability, combined with a stable demand environment, give us every confidence for the rest of the year and into 2024 despite the inevitable headwinds to which our global industry is prone.”CEO Michael Rousseau.To that end, the company is increasing its ‘available seat mile’ capacity by 20% on major routes ahead of the busy Christmas holiday season.The company also saw its freight business increase; it had six Boeing 767 dedicated freighter aircraft in its operating fleet as of September 30 2023, compared to just two at this time last year."Viewed sequentially, Air Canada's progressive performance to date proves the success of its strategy to grow back the airline and improve operational stability, while mitigating risks. This requires navigating geopolitical uncertainty, inflation and the volatile fuel price environment, meeting increased competition and dealing with supply chain and the evolving regulatory environment,” said CEO said Michael Rousseau.“Yet our demonstrated adaptability, combined with a stable demand environment, give us every confidence for the rest of the year and into 2024 despite the inevitable headwinds to which our global industry is prone.”.Despite the positive performance and outlook, Air Canada’s shares were down about 2% on the Toronto Stock Exchange on Monday and are down about 14% year to date.
