Q3 of 2014 is proving to be a record breaking quarter for North American airlines in terms of profitability. While the US airlines have reported record breaking profitability due to a number of factors going in their favour, Air Canada has also seen record profits this quarter to the extent which have not been seen in its 77 year long history before.

Air Canada has earned an adjusted net income of $457 mn as compared to $365 mn for corresponding period last year, which is an improvement of $92 million. This translates to $1.55 per diluted share. This record been established both for adjusted net income level as well as EBITDAR.

Reasons for profitability, as attributed to by the company management and aviation experts are:

• Better employer-employee relations that provide stability and ground for long term fleet expansion and profitability. An example to this effect is the recent 10-year long term agreement with pilots.

• Focus on international routes

• Strategic deployment of Air Canada rouge, a subsidiary airline for the leisure market

• Turning Toronto Pearson into a global hub for the airline