Air Canada eyes healthy demand in the summer season after racking up losses in 1Q2014

Air Canada is looking to brighter days as the high summer travel season approaches after recording a loss for the first three months of 2014. Its performance during 1Q2014 was mixed as Air Canada turned a favourable cost and top-line revenue performance, but experienced pressure in the domestic and Pacific markets, which limited the airline's ability to get traction in yields.

The carrier is also continuing to battle pressure created by the depreciation of the CAD against the USD, which also helped contribute to Air Canada's quarterly losses. It appears Canadian carriers are likely to feel currency pressure throughout 2014 as Air Canada estimates an exchange rate of CAD1.10 to the USD for the year.

After a tough 1Q2014 Air Canada does see upside in subsequent quarters, touting strong demand as the busy summer travel period gets underway in the latter half of 2Q2014. Although it is not certain if demand is robust enough for a turn in the carrier's fortunes.