Benzinga | Nov 9, 2020 12:53PM EST

Air Canada Suffers CA$554 Million Q3 Loss

Air Canada (OTC:ACDVF) performed better than analysts expected in the third quarter, but results were still grim with an operating loss of CA$785 million ($601 million) prompted by an 88% drop in passenger traffic because of the coronavirus pandemic.

The airline was able to cut costs enough to beat earnings expectations, but revenue was below what analysts predicted.

The company recorded negative earnings before interest, taxes, depreciation and amortization of CA$554 million, but earnings of negative CA$2.31 per share came in ahead of the consensus call of negative CA$2.54 per share. Revenue declined 86% to CA $757 million, below the estimate of CA$1 billion.

Cash burn of CA$9 million per day was better than guidance of CA$15 million to CA$17 million per day.