Air Canada's Quarterly Profit Up 33 Percent

Air Canada reported a nearly 33 percent rise in second-quarter profit, helped by a decline in fuel costs.

The company's net income rose to CAD$296 million (USD$226.9 million) in the second quarter ended June 30, from CAD$223 million a year earlier.

Operating revenue rose 3.3 percent to CAD$3.41 billion.

Air Canada said it now expected adjusted cost per available seat mile, which excludes fuel expenses, to decline by between 1 and 2 percent in 2015. It had previously forecast a 1.5 to 2.5 percent decrease.

This measure edged up to 11.3 cents in the second quarter from 11.2 cents a year earlier.

Air Canada has become consistently profitable after years of losses, but it is facing more competition from smaller rival WestJet. Once a low-cost carrier focused on the domestic market, Calgary-based WestJet is expanding internationally and trying to attract more business customers.