- Joe Breitfeller
Air Canada Reports Third Quarter Net Loss of $508 Million or $1.42 per Diluted Share
Air Canada has reported a third quarter net loss of $508 million or ($1.42) per diluted share on an increase in revenue to $5.3 billion, up from $2.1 billion in Q3 2021. At September 30, 2022, the carrier had total liquidity of over $10.2 billion.
On Friday (October 28, 2022), Air Canada reported their third quarter financial results for the period ending September 30, 2022. The carrier reported a third quarter loss of $508 million or ($1.42) per diluted share compared to a third quarter 2021 net loss of $640 million or ($1.79) per diluted share. Air Canada’s third quarter revenue more than doubled year-over-year to $5.3 billion. The airline’s Q3 net loss includes a foreign exchange loss of $951 million. At September 30, 2022, Air Canada had total liquidity of over $10.2 billion including $9.2 billion in cash, cash equivalents and investments, as well $1.03 billion available under undrawn credit facilities.
In Thursday’s announcement, Air Canada’s President and Chief Executive Officer, Michael Rousseau, said,
“Air Canada's solid third quarter results stem from the ongoing restoration of our extensive network, an improved operational performance, our modern and efficient fleet, as well as leading products and services, and an incredible team of employees. We generated $644 million in operating income with a strong operating margin of 12.1 per cent. This was the first quarter since the pandemic began in which we delivered positive operating income. In addition, we achieved significant improvements in other metrics from a year ago. Operating revenues more than doubled to $5.3 billion, on a capacity growth of 130 per cent, and EBITDA* increased to over a billion, with a margin of 19.9 per cent. Yields also improved, helping offset higher fuel prices. Air Canada Cargo is consistently contributing to our results and Aeroplan is continuing to perform extremely well with travel's return. Our transformed loyalty program’s gross billings from points sold, purchase volume on co-brand cards, and new members are all at record highs.
“Despite the global disruption of air travel, through teamwork and focused efforts, we safely transported nearly 11.5 million customers to their destinations this quarter. We are further encouraged by continuing strong demand, now further stimulated by the easing of COVID-related restrictions. Advance ticket sales in the quarter were at 95 per cent of third quarter 2019 levels. In the third quarter, our adjusted unit cost or adjusted CASM improved by 38 per cent to 11.6 cents compared to the same period last year, and we will continue to carefully control costs. We ended the quarter with just over $10.2 billion in total liquidity.
“Thanks to the hard work and commitment of our employees, after a difficult June and July, we saw significant operational improvement throughout August and September, with the operation today now on par with pre pandemic levels. Still, we know many customers experienced disruptions travelling this summer, and we sincerely regret any inconveniences that have occurred. We would like to thank our customers for their understanding and loyalty and assure them that the lessons of this operationally challenging period are now being applied to build greater resiliency going forward, and to elevate the customer experience overall. Air Canada marked its 85th anniversary this quarter. We stand on a robust foundation and, with our most recent financial results, investments and strategic plan, are confident we have a bright future in connecting Canada and the world.”
Air Canada's Third Quarter 2022 Financial Results and Operating Statistics - Courtesy Air Canada
Air Canada is Canada’s largest domestic and international airline. The Canadian flag carrier is a founding member of the Star Alliance and the only international network carrier in North America to receive a Four-Star ranking from Skytrax. Air Canada provides scheduled passenger service to 50 airports in Canada, 47 in the U.S. and 69 internationally. 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 Telbec