Air Canada outlook raised by Moody’s

TORONTO — Moody’s Investors Service has raised Air Canada’s outlook to positive on expectations that profits at the country’s largest airline will continue to improve.

The agency said the outlook also factors in a recent agreement with the federal authorities on pension funding and new labour agreements.

The federal deal greatly reduces the amount of cash required to fund the solvency deficit of its pension plan beginning in 2014. New labour agreements signed last year also provide the airline with labour stability into 2016 and a lower cost structure, Moody’s added.