(Reuters) – Air Canada reported a smaller adjusted quarterly loss on Friday, as Canada’s largest airline benefited from resilient travel demand.

Major airlines are witnessing the strongest travel demand since the beginning of the COVID-19 pandemic, despite rising airfares and squeezed budgets due to high inflation.

Canada, which lifted all COVID-related restrictions last year, has seen a strong rebound in international leisure and corporate travel.

The carrier posted an adjusted net loss of C$188 million, or C$0.53 per share, in the quarter ended March 31, compared with an adjusted loss of C$747 million, or C$2.09 per share, a year earlier.

North American carriers remain bullish on filling airplane seats due to limited capacity and a shift in consumer spending from goods to services.

Earlier this month, the Montreal-based airline raised its forecast for full-year core profit, citing lower-than-anticipated fuel costs and stronger-than-expected demand.

The Canadian carrier’s quarterly operating revenue more than doubled to C$4.89 billion ($3.66 billion).

($1 = 1.3372 Canadian dollars)