Air Canada loses $341 million in first quarter

Air Canada reported lower revenues in the first quarter.

Air Canada reports a first-quarter net loss of $341 million, or $1.20 per diluted share, compared with a net loss of $260 million, or 95 cents, in the same quarter last year, as it was hurt by a lower Canadian dollar.

The airline said it lost $161 million due to the lower loonie in the quarter, compared with a $40 million hit last year.

On an adjusted basis, the airline reported a net loss of $132 million, or 46 cents per diluted share, compared with a net loss of $143 million, or 52 cents per share, year-over-year.

Total revenues were up at $3.065 billion versus $2.952 billion year-over-year.

The Montreal-based airline also said it has abandoned plans to replace 25 narrow-bodied planes with newer models.

"With respect to the remaining 25 Embraer 190 aircraft in the airline's fleet, after careful consideration, Air Canada has decided to continue to operate the aircraft given their young age, productivity and high customer acceptance on existing routes and to avoid additional capital expenditures and debt," the airline said.

 That's bad news for aerospace manufacturer Bombardier, which had been hoping to secure that contract. But Brazil's Embraer would also have been in the running.

The company did say, however, that it would be receiving its first of several dozen Boeing 787 Dreamliner planes this weekend. The planes are ideal for long-distance, popular routes because they are much larger and much more fuel efficient than other planes at those distances.

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