TORONTO Feb 4 Air Canada, the
country's largest carrier, is looking for ways to bolster
revenue and cut costs to compensate for the weakening Canadian
dollar, its chief executive officer said on Tuesday.
Air Canada had forecast the Canadian dollar would weaken and
had been searching for ways blunt the impact, but the currency
has fallen more than it had expected, CEO Calin Rovinescu said
in a speech in Toronto.
"We got a head start looking at ways to mitigate the
exposure such as additional cost reductions or revenue
enhancements initiatives," he said, but did not provide any
Rovinescu said the airline has a currency hedge position
that will absorb some of its exposure. He also noted that the
price of crude, which often moves in tandem with the Canadian
dollar, has also fallen slightly.
Air Canada's stock, which hit its strongest level since
March 2008 last month, has tumbled about 25 percent in less than
two weeks on concerns the weaker Canadian dollar will drive up
Shares of Air Canada, which reports its fourth quarter
results on Feb. 12, were down 1.6 percent at C$7.56 in Toronto
WestJet Airlines Ltd, which reported full year
results on Tuesday, has raised ticket prices recently to
compensate for rising expenses caused the weak currency. It said
it could increase them again if the Canadian dollar falls