(Bloomberg) -- Air Canada lifted its outlook for the second time in three months, joining US airlines in posting big revenue gains on international routes. 

Canada’s largest airline said it expects to post C$3.75 billion to C$4 billion in adjusted earnings before interest, taxes, depreciation and amortization this year, thanks to strong demand and lower jet fuel prices. The shares jumped 4% in early trading in Toronto. 

In May, the company boosted its guidance, calling for a minimum of C$3.5 billion in adjusted Ebitda. 

Montreal-based Air Canada reported operating revenue of C$5.43 billion and operating profit of C$802 million for the second quarter. Both numbers beat analysts’ forecasts. 

North American airlines have been enjoying strong ticket sales to overseas destinations as consumers seize the opportunity to take longer trips they couldn’t do during the Covid pandemic. US airlines that focus on shorter domestic routes are in a tougher environment, forced to discount fares to fill seats while also paying more for workers.

“We are particularly pleased with our international performance, propelling nearly 70% of the year-over-year increase in passenger revenues,” Chief Executive Officer Michael Rousseau said Friday in a statement. 

But the airline said costs would be slightly higher than previously expected — 0.5% to 1.5% above last year’s levels, per available seat mile. 

“In an earnings season in which the market seems to be exceptionally skittish about any hint of moderation in airline earnings momentum, Air Canada expecting to hit the upper end of its guidance range seems very encouraging,” Citigroup analyst Stephen Trent said in a note to investors. 

(Adds share price, analyst comment, additional information on costs)

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