Air Canada aims to sustain profitability momentum through a focus on international service
Air Canada returned to profitability for the full year 2012 despite bruising labour unrest and intensifying competitive pressure from its main domestic rival WestJet.
To combat the increasing threat from WestJet, Air Canada is leveraging its international network in the hopes that strategic moves it is making to improve existing service and introduce new markets will allow it to sustain its recently-achieved fragile profitability.
The carrier's 2012 adjusted net income of CAD53 million (USD53 million) reversed a loss of CAD122 million (USD122 million) for the year-prior. Its full year 2012 profit is all the more noteworthy given its net losses for 1H2012 grew by CAD241 million (USD241 million) to CAD306 million (USD307 million).
While Air Canada turned a CAD107 million (USD 107 million) profit in 2010, it sustained losses of CAD24 million (USD24 million) in 2009. During 2008 Air Canada bled CAD1 billion (USD1 billion), which was followed by concessionary agreements reached with labour groups in 2009 to avoid a second stint in creditor protection after its emergence in 2004.
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