Air Canada suspends financial forecast for 2019 after Boeing 737 Max grounded

Analyst Walter Spracklin of RBC Dominion Securities advised investors not to be alarmed

Canada’s largest airline is suspending its financial guidance for this year following the decision by regulators in Canada and the United States to ground the Boeing 737 Max aircraft until further notice.

Air Canada said Friday that, “in light of the current uncertainty,” it is suspending the forecast it provided last month for its 2019 financial year.

The Montreal-based company said its guidance for the years 2020 and 2021 for return on invested capital and margin on earnings before interest, taxes, depreciation and amortization (EBITDA), as well as the cumulative free cash flow over the 2019-2021 period, remains in place.

Analyst Walter Spracklin of RBC Dominion Securities advised investors not to be alarmed.

WATCH: Canada bans Boeing 737 Max 8 plane following fatal Ethiopian crash

“We believe the company has avenues to work around the grounding, including the longer in-service use of older aircraft, possible access to third-party aircraft, the temporary use of different gauge aircraft and if necessary the temporary suspension of some routes,” he wrote in a research note.

Spracklin said the carrier’s suspension “does not come as unexpected and more importantly, we do not consider it to be impacting our longer-term view on the shares.”

Regulators around the world grounded the Boeing 737 Max 8 and Max 9 aircraft over safety concerns arising from the crash of an Ethiopian Airlines flight that killed everyone on board, including 18 Canadians.

Concerns have been raised regarding apparent similarities with a Lion Air flight involving the same aircraft that crashed off the Indonesian coast in October.

Air Canada has 24 Boeing 737 Max 8 aircraft out of 184 narrow-body planes in its fleet.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

The shores will not rock in 2019

Atomique Productions announce Rock the Shores festival will not return in 2019, future is uncertain

Video shows logging operation on disputed Saturna Island land

Tsawout First Nation members opposed to logging on reserve land

Family still searching for missing Langford man two weeks after disappearance

Family hopeful he is alive, offering $10,000 reward

Victoria police concerned about missing man’s well-being

Delmer was reported missing on March 19

Fracking, economy, climate at centre of Green Party town hall in Metchosin

Green Party leader Elizabeth May and local candidate David Merner take questions from community

Victoria hosts ‘Ultimate Hockey Fan Cave’

The hockey cave was recently featured on a Netflix special

Calgary captain has 3 points as Flames torch Canucks 3-1

Giordano leads way as Alberta side cracks 100-point plateau

Fire crews battle large blaze at Courtenay hostel

Courtenay Fire Chief Don Bardonnex said nobody was injured

1,300 cruise ship passengers rescued by helicopter amid storm off Norway’s coast

Rescue teams with helicopters and boats were sent to evacuate the cruise ship under extremely difficult circumstances

B.C. university to offer first graduate program on mindfulness in Canada

University of the Fraser Valley says the mostly-online program focuses on self-care and well being

Province announces $18.6 million for B.C. Search and Rescue

The funding, spread over three years, to pay for operations, equipment, and training

Late-season wave of the flu makes its round in B.C.

BC Centre for Disease Control reported 50 per cent jump in flu cases in first weeks of March

Tofino’s housing crisis causing some to seek shelter at the local hospital

Tofino’s housing crisis is pushing the town’s ‘hidden homeless’ population into the forefront.

Sentencing judge in Broncos crash calls for carnage on highways to end

Judge Inez Cardinal sentenced Jaskirat Singh Sidhu to eight years

Most Read