Air Canada estimated it will incur a net loss of C$260 million ($253.4 million) for the first quarter, slightly narrowed from a net deficit of C$274 million in the 2012 first quarter, in preliminary results released Monday.

The airline will release its full first-quarter results May 3. Operating loss for the March quarter is expected to be C$106 million, widened from an operating deficit of C$91 million in the year-ago period.

Air Canada said its first-quarter results “were negatively impacted by an estimated C$10 million due to flight cancellations caused by severe weather conditions and operational challenges at the airline’s major Canadian airport hubs, as well as aircraft deicing service delays at Toronto Pearson International Airport.” An unfavorable foreign currency impact on passenger revenue contributed to the operating loss, it added. 

Air Canada estimated that first-quarter RASM increased 1.1% year-over-year while CASM ex-fuel rose 1.4% compared to the year-ago quarter. The airline’s system capacity was down 1.1% year-over-year in the March quarter. The airline expects full year 2013 system ASMs to increase 1.5% to 2.5% compared to 2012.

The carrier posted full year 2012 net income of C$131 million, reversed from a C$249 million net loss in 2011.