UPDATE 3-Air Canada won't replace Embraer jets with Bombardier CSeries
* Q1 net loss C$1.20/share vs $0.95 year earlier
* Loss includes C$161 mln forex losses on weaker Canadian dollar
* Bombardier CSeries was in running for aircraft replacement
* Bombardier shares fall 3 pct (Adds analyst comment, updates share movement)
By Shubhankar Chakravorty
May 15 (Reuters) - Air Canada said it would not replace 25 narrow-bodied Embraer planes, dealing a blow to Bombardier Inc's hopes of pushing its CSeries aircraft into the company's fleet.
The CSeries has been dogged by multiple delays and cost overruns, but was in the running to replace these aircraft, which are part of Air Canada's fleet of 45 E190 planes made by Brazil's Embraer.
Bombardier shares fell as much as 3.5 percent to C$4.05 in morning trading on the Toronto Stock Exchange. Air Canada shares were little changed at C$7.82.
"After careful consideration, Air Canada has decided to continue to operate the (Embraer) aircraft given their young age ... and to avoid additional capital expenditures and debt," the largest Canadian carrier said in a statement on Thursday. Continued...