UPDATE 2-Air Canada'' s profit tops approximates as fuel expenses fall

An Air Canada airplane gets ready for take off at the International airport in Calgary, September 20, 2011.

Reuters/Todd Korol

<articleLocation” > Air Canada (AC.TO), the nation’s largest airline company, reported a better-than-expected quarterly profit on lower fuel expenses and cut its expense price quote for the year. Air Canada stated it now expected full-year changed cost per offered seat mile (CASM), which omits fuel costs, to fall in the range of 2.75-3.75 percent. The airline company had actually previously approximated a decrease of 1.75-2.75 percent. The company’s fuel costs per liter, usually an airline’s biggest variable cost, fell 22 percent to 52 Canadian cents in the 2nd quarter. However, net incomes was up to C$ 186 million ($ 141.32 million), or 66 Canadian cents per share, in the latest quarter from C$ 296 million, or C$ 1.00 per share, a year previously.

Excluding items, Air Canada made 72 Canadian cents per share, well above analysts’ typical quote of 58 Canadian cents, according to Thomson Reuters I/B/E/ S.

Operating earnings rose 1.3 percent to C$ 3.46 billion, but was below experts’ quote of $3.52 billion.

( Reporting by Anet Josline Pinto in Bengaluru; Editing by Anil D’Silva).

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