May 2 (Reuters) - Air Canada reported a smaller first-quarter adjusted loss on Thursday, as Canada's largest carrier benefited from a rebound in bookings for business travel.

Its adjusted loss narrowed to C$96 million ($69.98 million), or C$0.27 per share, from C$188 million, or C$0.53 per share, a year earlier.

($1 = 1.3719 Canadian dollars) (Reporting by Shivansh Tiwary in Bengaluru; Editing by Shinjini Ganguli)