Air Canada posts loss

Cape Breton Post - - Business -

MON­TREAL - Air Canada (TSX:AC) says a 16 per cent in­crease in op­er­at­ing costs due to higher fuel prices and other items has re­sulted in a $37-mil­lion loss for the first quar­ter.

The loss was equal to 14 cents per share and con­trasted with a $101 mil­lion profit in last year’s first quar­ter.

The Mon­treal-based air­line says its rev­enue was up $299 mil­lion from last year to $3.64 bil­lion, but its op­er­at­ing ex­penses were up by $507 mil­lion.

The air­line says fuel prices were about 48 per cent higher than in the first quar­ter of 2016, when global oil prices were near 13-year lows. In ad­di­tion, Air Canada recorded a $30 mil­lion spe­cial item re­lated to a fine im­posed in March by the Euro­pean Com­mis­sion on sev­eral cargo car­ri­ers.

The com­mis­sion al­leges the 11 air­lines col­luded to fix cargo prices be­tween 1999 and 2006. Air Canada says it fol­lowed the law and will fight the al­le­ga­tions.

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