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Air Canada Reports First Quarter 2024 Net Loss of $81 Million or $0.22 per Diluted Share

Air Canada has reported a first quarter 2024 net loss of $81 million or $0.22 per diluted share on a year-over-year increase in revenue of 7.0 percent to $5.2 billion. At March 31, 2024, Air Canada had total liquidity of just over $10.0 billion.


Air Canada Airbus A330-300 - Courtesy Air Canada

On Thursday (May 2, 2024), Air Canada reported their first quarter financial results for the period ending March 31, 2024.  The carrier reported a first quarter net loss of $81 million or $0.22 per diluted share on a year-over-year increase in revenue of 7.0 percent to $5.2 billion.  Air Canada’s adjusted first quarter adjusted cost per available seat mile, excluding fuel and other expenses (CASM-ex) increased 1.6 percent versus Q1 2023 to 14.76 cents.  At March 31, 2024, Air Canada had total liquidity of just over $10 billion, including $8.681 billion in cash, cash equivalents, short and long-term investments, and $1.32 billion in undrawn credit facilities.


In Thursday’s announcement, Air Canada’s President and Chief Executive Officer, Michael Rousseau, said,

 

“Air Canada’s solid first quarter results position our airline for a strong performance in 2024. We had operating revenues of $5.2 billion in the quarter, up $339 million from last year. Adjusted EBITDA grew by $42 million year over year to $453 million. I thank our employees for their hard work taking care of our 11 million customers and transporting them safely throughout the quarter.  I also commend them for improving our operations, notably a 13 percentage-point increase in system-wide, on-time arrivals, preparing us for an anticipated busy summer period.

 

“We are confident in our ability to deliver on our full year 2024 guidance.  As we look toward the summer, we see a continued healthy demand environment, and our customers will have a wide range of exciting travel options across Europe, Asia, and North America, for their summer holiday planning.  


“In the quarter, we generated over $1 billion of free cash flow, mainly resulting from cash generated from operating activities.  Our net debt-to-adjusted EBITDA ratio fell to 0.9 at the quarter's end.  We also made further progress in our strategy to deleverage the balance sheet by reducing gross debt.  Our accomplishments in this regard have been recognized by the credit rating agency community, more recently with S&P Global Ratings’ latest upgrade to 'BB' from 'BB-' at the end of April.  For the full year 2024, we remain certain of our ability to generate significant free cash flow.  Our strong balance sheet will serve as the foundation on which we will grow our airline through investments in our world-class global network and the deployment of capital allocation strategies that will create sustainable, long-term value, for all of Air Canada and its shareholders.”


Air Canada's First Quarter 2024 Financial and Operational Highlights - Courtesy Air Canada

Currently, Air Canada is arranging lease agreements for additional Boeing 737-8 MAX airplanes, that would be scheduled for delivery in 2024 for entry-into-service in 2025 following a complete cabin reconfiguration.


Air Canada is Canada’s largest domestic and international airline.  The Canadian flag carrier is a founding member of the Star Alliance and holds a Four-Star ranking from Skytrax.  Air Canada provides scheduled passenger service to 180 airports in Canada, the United States, and internationally on six continents.  Through the carrier’s Aeroplan loyalty program, customers can earn and redeem points on the world’s largest airline partner network of 45 airlines.  Air Canada Cargo offers air freight lift and connectivity to hundreds of destinations across six continents with a dedicated fleet of 767-300 Freighters and passenger aircraft belly hold capacity.  Additionally, the airline has committed to a net zero emissions goal from all global operations by 2050.


 

Source: Air Canada/CNW     

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