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Air Canada‘s booking patterns rebounded soon after the disruption from a flight attendant strike that shut down the airline’s operations in August, company executives say.
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The airline said robust momentum in bookings is positioning it to deliver “solid results” in the fourth quarter, which it expects will outperform last year’s Q4 results.
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“Demand has been strong despite the disruption’s impact,” Air Canada’s chief commercial officer, Mark Galardo, said during the company’s earnings call on Nov. 5.
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Chief executive Michael Rousseau said Air Canada shut down and restarted operations in record time in response to the labour disruption.
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He also said that the carrier’s voluntarily introduced goodwill policies, which have received more than 150,000 customer claims to date, are expected to finish in the coming weeks.
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“We are encouraged by the speed at which booking patterns recovered and the strength that has followed,” Rousseau said.
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Negotiations with airport staff, contact centres and maintenance facilities will also begin soon, the CEO added.
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The company again updated its outlook for 2025 to reflect the financial impact of the flight attendant strike, which led to a decline in revenues.
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Its third-quarter earnings results were released Tuesday, and were mostly in line with the preliminary results it provided on Sept. 24 reflecting the impact of the strike.
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The labour disruption was estimated to cost the company $375 million in operating income and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). It attributed the five per cent year-over-year decline in operating revenues to the strike.
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The airline said the cost included a revenue impact estimated to be $430 million, mainly due to customer refunds and compensation, as well as lower than expected travel bookings in August and early September.
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It also included $145 million in costs that were estimated to have been avoided due to the reduced flying activity during the labour disruption, largely attributable to lower fuel expenses.
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Cost avoidance was partially offset by an estimated $90 million in incremental costs associated with reimbursements to customers for out-of-pocket expenses and labour-related operating costs.
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Air Canada’s total operating expenses increased eight per cent year-over-year, largely due to $173 million from one-time pension plan amendments and other labour-related charges.
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Despite this, the airline said its third-quarter results still met expectations after adjusting for the strike impact, which occurred at the peak of the summer season.
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