Air Canada reports “solid” third quarter 2024 financial results
Air Canada has reported its third quarter 2024 financial results with its President and Chief Executive, Michael Rousseau observing that: “Air Canada reported solid results for the third quarter on key metrics, with operating revenues of $6.1 billion and operating income of $1 billion. Adjusted EBITDA of $1.5 billion and our adjusted earnings per share of $2.57 were both ahead of market expectations.”
Rousseau continued: “We delivered on our ongoing operational improvement program, with quarterly on-time performance rising eight percentage points over the same period in 2023.”
And he added: “I thank all our employees for their care and dedication in safely moving nearly 13 million customers in the quarter, including our Olympic and Paralympic athletes to the summer games in Paris.”
Highlights of the results include:
- Third quarter operating revenues of $6.1 billion decreased 4% year over year
- Third quarter operating income of $1.040 billion and adjusted EBITDA of $1.523 billion decreased $375 million and $307 million year over year, respectively
- Generated cash flows from operating activities of $737 million and free cash flow* of $282 million in the quarter, a year-over-year increase of $329 million and $147 million, respectively
- Leverage ratio of 1.0 as at September 30, 2024, compared to 1.1 at end of 2023
- Normal course issuer bid announced.
Rousseau pointed out that: “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.”
Air Canada’s boss said that: “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.”
And he continued: “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 Dec. 17, 2024.”
Go to www.aircanada.com for more.
