EPS of $2.57 beat estimates of $1.58, but this was down 24% vs the comparable quarter; revenue of $6.11B matched estimates. EBITDA of $1.523B beat estimates by 18%. Air Canada's adjusted Ebitda fell 17% from a year ago, on margins down 390 bps to 24.9%, as softer yields offset gains from lower fuel prices, which could reverse. EBITDA may rise in 4Q to C$590 million before pilots' retroactive payment impact. Capacity climbed 3% vs. 3Q23, but is forecast to rise 1% in 4Q, with Pacific still leading. Yields fell 4% and load factors slid 290 bps to 86.9%, on seat additions and a hard comparison, but guidance sees better 4Q yields. Based on these assumptions, 4Q revenue could be flat at C$5.2 billion. Jet-fuel prices fell 3%, to 98 cents a liter, and could drop 19% vs. 4Q23 to 95 cents, cutting the expense by C$260 million. Other unit costs were mostly flat but may rise 4% in 4Q. But the big beat on earnings pleased investors, and the strike impact was less than feared. Guidance was encouraging with improvements expected in several areas and the company is resuming its share buyback program.
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