Air Canada sets record for adjusted earnings, which more than doubled in 2015

MONTREAL -- Air Canada is reporting strong financial results, including a record high for adjusted annual profit for the second year in a row.

The airline's adjusted net income for 2015 was $1.2 billion -- more than double the previous record of $531 million in 2014.

The adjusted earnings provided by Air Canada (TSX:AC) are more closely watched by analysts than net income, which includes items required under generally accepted accounting principles.

The company's adjusted net income for the full year equalled $4.18 per diluted share, including 40 cents in the fourth quarter.

Analysts had estimated adjusted earnings of 40 cents per share for the quarter, according to Thomson Reuters data.

Overall operating revenue in the quarter was $3.18 billion, up $78 million from a year earlier. That included $2.836 billion in system passenger revenue, up $81 million.

Traffic growth of 8.6 per cent in the fourth quarter reflected traffic increases in all of Air Canada's five geographic markets.

For the full year, Air Canada had $13.87 billion of operating revenue, up $596 million. System passenger revenue was $12.4 billion, up $616 million.

Without adjustments, Air Canada's net income for 2015 as a whole was $308 million -- up from $105 million in 2014. In the fourth quarter, there was a net loss of $116 million -- compared with a $100-million loss a year earlier.

The adjusted earnings remove the effects of foreign exchange, employee benefits, adjustments to the market value of its fuel hedging contracts and other derivatives and unusual items.