08/04/2011 06:59 EDT | Updated 10/04/2011 05:12 EDT

Air Canada Reports $46 Million Loss In Second Quarter

Flickr: Alaskan Dude

MONTREAL - Air Canada is reporting a net loss of $46 million in the second quarter, compared to a net loss of $318 million in the same period last year.

The airline says its loss per diluted share was 17 cents in the quarter compared to a per-share loss of 20 cents a year ago.

Air Canada also says it logged operating income of $73 million in the quarter compared to $47 million in the second quarter of 2010.

"I am very pleased to report continued improvements in our financial performance for the second quarter," said Air Canada president and CEO Calin Rovinescu.

"Despite significant increases in fuel prices year-over-year and the effects of a three-day work stoppage by our call centre and airport customer service agents represented by the CAW, the second quarter's operating profit reflects our disciplined approach to capacity management."

Rovinescu also said fuel prices remain volatile and at historically high levels and he estimates this will add approximately $800 million to operating costs in 2011.