Air Canada (AC.TO) reported second-quarter adjusted net income of C$114 million, or C$0.40 per share, down from C$207 million, or C$0.60 per share.
Operating revenues were C$6.27 billion, up from C$5.63 billion.
In addition, Air Canada's frequent flyer program Aeroplan is set to receive a C$2.5 billion minority equity investment from funds managed by Blackstone and La Caisse and other Canadian institutions, the company said Tuesday.
Under the agreement, the investor group will acquire a 25% non-controlling equity interest in Aeroplan. The deal values the program at C$10 billion.
Air Canada will continue to operate and retain a controlling ownership interest in Aeroplan. Proceeds from the investment will be used to repay Air Canada's C$1.7 billion bond maturity.
Air Canada said it will conduct a substantial issuer bid to purchase for cancellation up to C$800 million of its class A variable voting shares and class B voting shares, which will be funded from proceeds from the Aeroplan investment.