Strong demand for international travel and a robust business travel recovery helped drive what management is calling “solid” results for Air Canada’s third quarter 2024.
“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,” said President and CEO Michael Rousseau.
Air Canada President and CEO, Michael Rousseau, accepts the APEX Five Star Global Airline Award. (Photo Credit: CNW Group/Air Canada)
“We delivered on our ongoing operational improvement program, with quarterly on-time performance rising eight percentage points over the same period in 2023. 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.”
The carrier now expects 2024 adjusted earnings before interest, taxes, depreciation and amortization of about $3.5 billion ($2.51 billion last year), compared with its previous forecast of $3.1 billion to $3.4 billion. Its profit rose to $2.04 billion from $1.25 billion a year earlier.
Looking ahead, Rousseau remains optimistic.
“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.”
Like so many other travel companies, Air Canada piled on debt during the pandemic. Rousseau says the positive current environment is enabling it to pay some of that down.
“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 Rousseau.
Air Canada is boosting flights to China.
Air Canada continues to focus on its extensive international network. It recently announced a codeshare agreement with Air Baltic, aimed to boost its presence in Northern Europe. And the airline announced this week that it is significantly boosting flights to China while also adding capacity to other Asia Pacific routes.
This week, Air Canada was recognized once again with a Five Star Global Airline Award at the Airline Passenger Experience Association (APEX) 2025 Awards. This is the sixth time in seven years that the airline has been awarded an APEX Five Star rating, which is based on customer feedback.