Montreal / AFP
Air Canada has signed a $3.8 billion deal with Bombardier to buy 45 CS300 jets, with options to purchase another 30 planes, the companies announced. Deliveries of the all-new aircraft will begin in 2019.
“With the signing of Air Canada for the leading-edge CS300 aircraft, we add a major international airline customer based in North America to complement our orders in both Europe and Asia,” Bombardier president and chief executive Alain Bellemare said in a statement.
Beating earnings estimates
Air Canada has reported fourth-quarter earnings that beat analysts’ estimates as fuel costs decreased and revenue advanced.
Adjusted profit rose to 40 Canadian cents a share, the Montreal-based airline said. Analysts on average had predicted 39 cents, according to 11 estimates compiled by Bloomberg. Revenue rose 2.5 percent to C$3.18 billion, compared with the consensus of C$3.2 billion.
Chief Executive Officer Calin Rovinescu’s plan to reduce costs through 2018 is getting a boost from the 39 percent decline in jet kerosene prices last year. Results at Canada’s biggest airline have also benefited from new supplier agreements, expanding the Rouge low-cost unit and the addition of fuel-efficient Boeing Co. 787 aircraft.
Air Canada shares had fallen 18 percent this year through Tuesday.