Air Canada said strong demand and fare increases are helping it manage the recent rise in fuel prices, with limited near-term impact expected on first-quarter results.
Speaking at the JPMorgan Industrials Conference, chief executive Michael Rousseau said the airline had already implemented price increases and continued to see “strong demand”, echoing comments from US carriers earlier in the day.
Rousseau said fuel would not impact first-quarter results, helped by hedging and inventory bought at pre-conflict prices. For the second quarter, about half of booked fuel volume is hedged, while the rest will be subject to higher market prices.
Air Canada also said it has moved quickly to protect supply, shifting some procurement from Asia to the US Gulf Coast and Washington state. Chief financial officer John Di Bert said west coast inventory is effectively protected through mid-April.
The carrier also highlighted continued momentum in corporate travel. Di Bert said corporate revenue rose about 10% year-on-year in the fourth quarter, with particularly strong growth on transatlantic routes, where corporate traffic is up around 30%.
Air Canada says fuel hedges and resilient demand support outlook
