MONTREAL – ********** hiked its earnings outlook Thursday, saying it expects earnings to rise due to an improvement in traffic as well as stronger-than-anticipated demand and lower-than-expected fuel prices.

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

The company says its outlook assumes moderate Canadian GDP growth for 2023, as well as the Canadian dollar trading on average at $1.34 per U.S. dollar, and a $1.09-per-litre average *** fuel price.

********** posted a $1.7-billion loss in fiscal 2022, but reported a profit in the final quarter as the industry continued to claw its way back from the ********, and announced plans to boost capacity in 2023.

Chief executive Michael Rousseau told analysts in February that the company expects solid demand in 2023.

The ******* is releasing its results for the first quarter of 2023 on May 12.