03 November, 2024
Up to eight young Canadian women studying to be commercial pilots or aircraft maintenance engineers may be able to apply for scholarships to pursue their training in 2025.
02 November, 2024
Air Canada Reports Third Quarter 2024 Financial Results
"Summer is our peak season and this year our pilot contract negotiations added complexity. We proactively offered options and flexibility to customers, and I am proud that we concluded a mutually beneficial agreement without significant disruption to customers and with a contained revenue impact. I thank our customers for their loyalty and reiterate our promise to keep providing industry-leading products and services to them.
"The demand environment remains favourable. We have adjusted our full year guidance and underlying assumptions to account for the evolution of the fuel price environment and for certain contract-related adjustments. We are delivering on our commitments and are confident in our future. We are now announcing a new share buyback program, addressing some of the dilution experienced from financing decisions necessary during the pandemic, and returning value to shareholders. This additional step, after paying down our debt and funding our growth, is consistent with our capital allocation roadmap and our strategic plan, which we will detail at our Investor Day on December 17, 2024," said Mr. Rousseau.
*Adjusted CASM, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted EBITDA margin, leverage ratio, net debt, adjusted pre-tax income (loss), adjusted net income (loss), adjusted earnings (loss) per share, and free cash flow are referred to in this news release. Such measures are non-GAAP financial measures, non-GAAP ratios, or supplementary financial measures, are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results. Refer to the "Non-GAAP Financial Measures" section of this news release for descriptions of these measures, and for a reconciliation of Air Canada non-GAAP measures used in this news release to the most comparable GAAP financial measure. |
Third Quarter 2024 Financial Results
The following is an overview of Air Canada's results of operations and financial position for the third quarter 2024 compared to the third quarter 2023.
- Operating revenues of $6.106 billion decreased $238 million or 4%, resulting from lower passenger revenues.
- Operated capacity increased 3%, lower than the capacity guidance of 4%-4.5% increase communicated in Air Canada's news release dated August 7, 2024. This was primarily due to fleet constraints and to adjustments made to the operating schedule.
- Operating expenses of $5.066 billion increased $137 million or 3%. The increase was largely due to higher costs in most line items due to capacity growth and was partially offset by certain contract-related adjustments recorded this quarter.
- Operating income of $1.040 billion, with an operating margin of 17.0%, declined $375 million.
- Adjusted EBITDA of $1.523 billion, with an adjusted EBITDA margin* of 24.9%, declined $307 million.
- Net income of $2.035 billion, which included a favourable tax asset recognition of $1.154 billion, and diluted earnings per share of $5.38 compared to $1.250 billion and $3.08 per diluted share, respectively.
- Adjusted net income* of $969 million and adjusted earnings per diluted share* of $2.57, compared to $1.281 billion and $3.41 per diluted share, respectively.
- Adjusted CASM* of 12.15 cents decreased 0.4%, primarily due to the impact of contract-related adjustments recorded in the third quarter of 2024.
- Net cash flows from operating activities of $737 million increased $329 million.
- Free cash flow* of $282 million increased $147 million.
- Net debt-to-adjusted EBITDA ratio* (leverage ratio) was 1.0 at September 30, 2024, compared to 1.1 at December 31, 2023.
Outlook
For the full year 2024, Air Canada is updating its guidance to account for updated expectations of jet fuel prices and the impact of contract-related cost adjustments. Full year 2024 guidance is as follows:
Metric | 2024 Guidance | Prior 2024 Guidance |
ASM capacity | Approximately 5% increase versus 2023 | 5.5% to 6.5% increase versus 2023 |
Adjusted CASM | Approximately 2% increase versus 2023 | 2.5% to 3.5% increase versus 2023 |
Adjusted EBITDA | Approximately $3.5 billion | $3.1 billion to $3.4 billion |
Major Assumptions
Air Canada made assumptions in providing its guidance—including moderate Canadian GDP growth for 2024. Air Canada also assumes that the Canadian dollar will trade, on average, at C$1.36 per U.S. dollar for the full year 2024 and that the price of jet fuel will average C$1.00 per litre for the full year 2024.
Normal Course Issuer Bid
Air Canada is also announcing today that the Toronto Stock Exchange ("TSX") has accepted notice of its intention to make a normal course issuer bid ("NCIB") allowing it to purchase for cancellation up to 35,783,842 of its Class A variable voting shares and Class B voting shares (collectively the "Shares") in accordance with the rules of the TSX.
Air Canada believes that purchases of Shares under the NCIB will allow it to address some of the shareholder dilution experienced from financing decisions necessary during the pandemic. Air Canada further believes that the market price of its Shares from time to time may not fully reflect the underlying value of its business and future business prospects. In such circumstances, the purchase of Shares under the NCIB may be an attractive and appropriate use of its available cash, consistent with Air Canada's priority of investing in its growth, maintaining balance sheet strength and generating shareholder value through a balanced capital allocation strategy.
Air Canada is authorized by the TSX to purchase up to 35,783,842 Shares under the NCIB, being about 10% of the public float of its Shares. As at October 22, 2024, the number of outstanding Shares totalled 358,493,006, of which 357,838,424 Shares represented the public float. Purchases under the NCIB are authorized during the period from November 5, 2024 to November 4, 2025. Decisions regarding the amount and timing of purchases of Shares will be based on market conditions, share price and other factors. Air Canada may elect to modify, suspend or discontinue the NCIB at any time.
Purchases will be made through open market transactions on the TSX or Canadian alternative trading systems, if eligible, or such other means as securities regulatory authorities may allow, including block purchases, pre-arranged crosses or exempt offers, as well as private agreements under an issuer bid exemption order issued by a securities regulatory authority. Air Canada will pay the market price at the time of acquisition for any Share purchased, plus brokerage fees, or such other price as may be allowed. Any purchases made under an issuer bid exemption order would be at a discount to the prevailing market price of the Shares or otherwise in accordance with the terms of the order.
Within the past 12 months, Air Canada has not purchased any of its Shares. The average daily trading volume ("ADTV") of the Shares on the TSX was 2,143,460 Shares for the six-month period ended September 30, 2024. Under TSX rules, Air Canada may accordingly purchase up to 535,865 Shares on the TSX on any trading day, being 25% of the ADTV. Air Canada may also, once weekly, purchase a block of Shares not directly or indirectly owned by insiders, which may exceed such daily limit, in accordance with TSX rules. All Shares purchased pursuant to the NCIB will be cancelled.
Air Canada will enter into an automatic share purchase plan (the "Plan") with its designated broker to be effective on the commencement date of the NCIB. The Plan will allow for the purchase of Shares at times when Air Canada would ordinarily not be active in the market due to regulatory restrictions, self-imposed blackout periods or otherwise. Purchases by the designated broker made under the Plan, if any, will be based on parameters established by Air Canada in accordance with the rules of the TSX, applicable securities laws and the terms of the Plan. Shares may in Air Canada's discretion be purchased under the NCIB outside of the self-imposed black-out or other restricted periods in compliance with the rules of the TSX and applicable securities laws.
ALOHA Collection and Hawaiian Airlines Commemorate 95 Years with heritage design collaboration
Exclusive gear with Hawaiian Airlines 95th Anniversary designs now available for purchase online and in store
American Airlines to offer largest-ever schedule to Italy in 2025
“As Italy continues to remain popular for summertime travel, American is making it easier than ever for customers to shop, dine or unwind in their favourite destinations,” said Brian Znotins, American’s Senior Vice President of Network and Schedule Planning. “Whether revelling in the history of Rome or relaxing on a beach on the Mediterranean, American’s network will offer more ways for customers to plan their perfect itinerary.”
Tickets will be available for purchase starting Nov. 4 on aa.com and American’s mobile app.
Experience la dolce vita in Italy
Building upon its new NAP service that launched this year, American will become the only airline flying nonstop from Chicago (ORD) to NAP in 2025. The airline will offer more seats to NAP than any other U.S. airline, giving customers comprehensive access to the gateway to mouthwatering cuisine, historical ruins and the sunshine of the Amalfi Coast.
American will offer its first-ever nonstop flight from Dallas-Fort Worth (DFW) to VCE starting June 5. Complementing existing service from Philadelphia (PHL), the airline will offer convenient one-stop connections to VCE from more than 230 destinations in North America.
The timeless appeal of Rome will be easier to visit with expanded summer service from Miami (MIA) and PHL. Announced in September, American’s new service between MIA and FCO will now start in June instead of July as previously announced. And, complementing daily year-round service from PHL, American will operate a second daily summer flight to FCO. American will operate flights from FCO to more destinations in the United States than any other U.S. airline, giving customers the flexibility to choose a schedule that gets them where they want to go when they want to go.
Departure Airport | Arrival Airport | Service Notes | Aircraft Type |
---|---|---|---|
Chicago (ORD) | Naples (NAP) | Daily service will begin May 6 | Boeing 787-8 |
Dallas-Fort Worth (DFW) | Venice (VCE) | Daily service will begin June 5 | Boeing 787-8 |
Miami (MIA) | Rome (FCO) | Daily service will begin June 5 | Boeing 777-200 |
Philadelphia (PHL) | Rome (FCO) | Second daily service will begin June 5 | Boeing 787-9 and 787-8 |
Explore more of Europe with our partners
Together with American’s joint business partners, customers will have more ways to explore their familiar favourites or new neighbourhoods across Europe and beyond. Next year, American will expand service to partner hubs with additional daily flights from DFW and MIA to London (LHR) and new service between ORD and Madrid (MAD). Thanks to these partnerships, customers can create seamless itineraries to more than 175 destinations in Europe.
American recently announced additional nonstop service to Europe, including resuming service to Edinburgh, Scotland (EDI), next year. The airline will also launch more flights to Athens, Greece (ATH), and Milan (MXP) next year.
Vince "Air Canada" Carter's Legacy Soars with High-Flying Tribute
Porter Airlines expanding Montréal & Ottawa hubs with new seasonal US routes
IAG Cargo releases new winter schedule.
The new IAG Cargo winter schedule delivers a 5% increase in weekly rotations to Africa and the Middle East, including the return of services from London to Jeddah.
Seven additional flights per week to Miami from London Heathrow and a resumption of the same service to Dublin
Latin America to see three more weekly flights to Sao Paulo from London Heathrow
Porter scores four star top APEX award
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Air Canada and CAE, two Montreal-based global aviation companies confirmed the opening for applications for the Captain Judy Cameron Scholarship, fostering the next generation of women in non-traditional airline careers.
3D Wooden Map on the wall is a unique and eye-catching product that is perfect for decorating any living and workspace. Made of high-quality birch wood, the map features intricate details and contours that bring a realistic and beautiful representation of the world to your wall. The 3D design allows for a more immersive experience, making it an ideal addition to a living room, office or study. This product isn't only aesthetically pleasing but also serves as an educational tool, as it can be used to teach geography to children or to plan your next travel adventure. With easy installation and a durable design, a wooden map on the wall is an excellent investment for any decorator or traveller
Enhanced global services with IAG Cargo's new 2024-25 winter schedule
The new IAG Cargo winter schedule delivers a 5% increase in weekly rotations to Africa and the Middle East, including the return of services from London to Jeddah.
Seven additional flights per week to Miami from London Heathrow and a resumption of the same service to Dublin
Latin America to see three more weekly flights to Sao Paulo from London Heathrow
3D Wooden Map on the wall is a unique and eye-catching product that is perfect for decorating any living and workspace. Made of high-quality birch wood, the map features intricate details and contours that bring a realistic and beautiful representation of the world to your wall. The 3D design allows for a more immersive experience, making it an ideal addition to a living room, office or study. This product isn't only aesthetically pleasing but also serves as an educational tool, as it can be used to teach geography to children or to plan your next travel adventure. With easy installation and a durable design, a wooden map on the wall is an excellent investment for any decorator or traveller
Applications open for 6th edition of the Air Canada and CAE Captain Judy Cameron Scholarship
3D Wooden Map on the wall is a unique and eye-catching product that is perfect for decorating any living and workspace. Made of high-quality birch wood, the map features intricate details and contours that bring a realistic and beautiful representation of the world to your wall. The 3D design allows for a more immersive experience, making it an ideal addition to a living room, office or study. This product isn't only aesthetically pleasing but also serves as an educational tool, as it can be used to teach geography to children or to plan your next travel adventure. With easy installation and a durable design, a wooden map on the wall is an excellent investment for any decorator or traveller
September Saw 9.4% Growth for Air Cargo
The International Air Transport Association (IATA) released data for September 2024 global air cargo markets showing continuing strong annual growth in demand. • Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 9.4% compared to September 2023 levels (10.5% for international operations) for a 14th consecutive month of growth. • Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 6.4% compared to September 2023 (8.1% for international operations). This continued to be largely related to the growth in international belly capacity, which rose 10.3%--extending the trend of double-digit annual capacity growth to 41 consecutive months. “September performance brought continued good news for air cargo markets. With 9.4% year-on-year growth, cargo volumes continued to mark all-time highs for demand. Yields are also improving, up 11.7% on 2023 and 50% above 2019 levels. All this points to a strong finish for this year. For longer-term trends, the air cargo world will be closely following the outcome of the US election for indications of how US trade policy will evolve,” said Willie Walsh, IATA’s Director General. Several factors in the operating environment should be noted: • Year-on-year, industrial production rose 1.6% while global goods trade increased 2.8% for a sixth consecutive month of growth. Monthly trade grew by 1.4%, the highest in seven months. • The Purchasing Managers Index (PMIs) for global manufacturing output, and the PMI for new export orders, were both below the 50-mark at 49.4 and 47.5 respectively, indicating contraction. • US headline inflation, based on the annual Consumer Price Index (CPI), declined by 0.2 percentage points to 2.4% in September, marking the seventh straight month of easing inflation. In the same month, the inflation rate in the EU fell by 0.3 percentage points to 2.1%, continuing a process started in January 2023. China’s consumer inflation remained low at 0.4% in September amid concerns of an economic slowdown. |