CANADA. Strong ticket sales for domestic flights contributed to Air Canada’s passenger traffic increase of +6.6% in March.
Capacity increased by +3.8% and the percentage of seats filled (load factor) rose from 74.3% to 76.3%. The last three months overall saw a traffic increase of +5.0%.
Air Canada declared bankruptcy more than a year ago and its financial situation remains a worry for the airport and duty free sectors in Canada. The airline accounts for some 70% of the country’s entire international passenger traffic and it is not clear if a Swissair-style recovery plan to keep the carriers planes flying could succeed.
Until last week, it looked like Trinity Time Investments would come to the rescue with a capital infusion of C$650 million, but the agreement was scrapped because the Canadian Auto Workers union (CAW) wouldn’t compromise on pension issues. The Ontario Superior Court has now extended bankruptcy protection until mid-May, as CEO Robert Milton scrambles to find another investor willing to save the national carrier from liquidation.
MORE STORIES ON AIR CANADA
Air Canada traffic rises on back of increase in Pacific routes – 17 March 2004
Air Canada continues steady recovery in traffic – 12 February 2004
