Air Canada has adjusted its full year guidance with the airline expecting that its 2024 adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) will total approximately C$3.5 billion ($2.51 billion), in comparison with its previous guidance which estimated earnings in the region of C$3.1 billion ($2.2 billion) to C$3.4 billion ($2.4 billion).
During the third quarter of the year the Canadian flag carrier reported total operating revenues of C$6.1 billion ($4,3 billion), decreasing by 4% in comparison to the same period of 2023, with the airline putting this down to a lower passenger revenue for the quarter.
Adjusted net income was C$969 million ($695 million), with adjusted earnings of C$2.57 ($1.84) per diluted share, down from C$1.28 billion ($918 million) and $C3.41($2.45) per diluted share in the same period of the year prior.
Operating income came in at C$1.04 billion ($746 million) with an operating margin of 17%, declining by C$375 million ($296 million) in comparison to 2023. Adjusted EBITDA for the period totalled C$1.52 billion ($1.09 billion), with an adjusted EBITDA margin of 24.9%, declining again in comparison to the comparable period of the year prior by C$307 million ($220 million).
During the three-month period net cash flow from operating activities rose to C$737 million ($528 million) an increase of C$329 million ($236 million) from the year prior. Free cash flow climbed by C$147 million ($105 million), reaching C$282 million ($202 million).
Michael Rousseau, president and chief executive of Air Canada commented: “We delivered on our ongoing operational improvement program, with quarterly on-time performance rising eight percentage points over the same period in 2023. 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. “
He added: “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. “
In the nine months up until September 30, 2024, Air Canada recorded total operating revenues of C$16.6 billion ($11.9 billion), an increase of C$193 million ($138 million) when comparing figures to the first nine months of 2023. However operating income has seen a decrease in the first nine months of 2024, compared to 2023, decreasing by C$683 million ($490 million).
Looking at operations for the quarter and Air Canada’s revenue measured in passenger miles (RPMs) saw a decrease of 0.4% during the quarter, while available seat miles (ASMs) saw a 3% increase when looking at the comparable quarter of 2023. The carrier achieved an overall load factor for the period of 86.9%, that is a decrease in comparison to an average load factor of 89.8% that was seen during the third quarter of 2023. At the end of the quarter the airline has an operating fleet of 353 aircraft, one less than the end of the third quarter of last year.