(Montreal) Air Canada raised its earnings outlook on Thursday, saying it expects better results due to improved traffic as well as stronger-than-expected demand and lower-than-expected fuel prices. foreseen.

The Montreal-based airline says adjusted earnings before interest, taxes, depreciation and amortization in 2023 are expected to be between $3.5 billion and $4 billion, up from the $2.5 billion to $3 billion forecast released on Feb. 17.

The company says its outlook assumes moderate Canadian GDP growth for 2023, along with the Canadian dollar trading on average at $1.34 per US dollar and an average jet fuel price of $1.09 per litre.

Air Canada posted a $1.7 billion loss in fiscal 2022 but reported a profit in the final quarter as the industry continued to recover from the pandemic and announced plans to increase capacity in 2023 .

Chief Executive Michael Rousseau told analysts in February that the company expects strong demand in 2023.

The airline will release its first quarter 2023 results on May 12.