Air Canada cuts annual profit forecast by hundreds of millions as fuel costs soar

Air Canada has cut its profit forecast for the year by hundreds of millions of dollars, with sky-high fuel costs the reason, according to a news report from Montreal.

The airline's bottom line was nearly cut in half in the quarter, a turbulent stretch for the carrier. The report's headline said fare hikes can't keep up with soaring fuel costs, pointing to a gap between what the airline collects from passengers and what it pays to keep planes in the air.

Fuel is one of the biggest line items behind any airline ticket, so a squeeze like this is worth watching for anyone in Metro Vancouver who books regular flights, whether for work, family or travel.

The report described the forecast reduction as hundreds of millions of dollars rather than a single figure. Air Canada's detailed numbers for the quarter and the revised outlook will show how deep the hit runs.