MONTREAL – Air Canada has reported a profit of $264 million for the third quarter of the current fiscal year, a noticeable decline from the $2.04 billion profit recorded during the same period last year. This reduction marks a significant downturn in the airline's financial performance year-over-year.

The diluted earnings per share (EPS) during this quarter stood at 88 cents, substantially lower than the $5.38 EPS reported in the corresponding quarter of the previous year. This significant decrease in EPS underscores the challenges the airline faced and reflects the impact of external factors on its financial health.

In terms of operational performance, Air Canada's operating revenues for the quarter totaled $5.77 billion, representing a decline of around five percent from the $6.1 billion recorded in the third quarter of the prior year. This decline in revenue is indicative of the competitive pressures and operational challenges that airlines are currently facing in a turbulent economic environment.

The results for the three-month period ending on September 30 included the adverse impacts of a three-day work stoppage by over 10,000 flight attendants in August. This labor disruption led to the cancellation of more than 3,000 flights, causing significant operational setbacks for the airline during a peak travel season.

Michael Rousseau, the CEO of Air Canada, noted that the company’s latest financial results align with its revised estimates, which were adjusted in light of the recent labor disruption that hindered operations during the busy summer travel months. This acknowledgment of the labor strike's effects highlights the challenges that major airlines face in managing labor relations and ensuring operational continuity amidst workforce disruptions.

In light of the challenges posed by the labor strike and its financial ramifications, Air Canada revised its full-year guidance in September. The airline has estimated the total cost of the strike to be around $375 million, a figure that reflects the broader impacts of lost revenue and increased operational costs associated with the disruption.

Overall, Air Canada's third-quarter results paint a picture of an airline grappling with significant challenges both operationally and financially, underscoring the need for strategic management and long-term planning to navigate the complexities of the aviation industry. The situation reflects broader trends within the sector, as airlines adjust to fluctuating demand, labor negotiations, and other economic pressures.