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Toronto Sun
20 hours ago
- Business
- Toronto Sun
Air Canada reports second-quarter earnings down in 'challenging environment'
Published Jul 29, 2025 • 2 minute read Air Canada logo. Photo by Mark Blinch / THE CANADIAN PRESS MONTREAL — Air Canada says second-quarter earnings were down from last year in what it characterized as a 'challenging environment.' This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Challenges include an 11 per cent drop in revenue in the airline's U.S. transborder routes that it attributed to geopolitical tensions and a lower Canadian dollar. The airline however saw increases in revenue from other areas, including its Atlantic and Latin American routes, as it redirected capacity, said chief executive Michael Rousseau in a statement. 'We have strategically redirected capacity to high-demand markets and captured demand for premium services, leveraging the breadth and strength of our global network.' Overall, the airline reported a net income of $186 million in the second quarter, down from $410 million in the same quarter last year. Air Canada says that on an adjusted basis, it had a net income of $207 million in the quarter compared with $369 million in the same quarter last year. This advertisement has not loaded yet, but your article continues below. Adjusted earnings worked out to 60 cents per diluted share in the quarter, compared to 98 cents per share last year. Analysts on average had expected an adjusted profit of 72 cents per diluted share, according to LSEG Data & Analytics. Passenger revenues in the quarter amounted to $5.03 billion, up one per cent from last year on a 2.5 per cent capacity growth. Revenue from its U.S. transborder segment was $961 million, down from $1.08 billion last year, while its Atlantic routes saw $1.64 billion in revenue, up from $1.56 billion last year. For the first six months of the year, revenue from U.S. flights were down 7.9 per cent and its Pacific routes were down 2.8 per cent, contributing to an overall drop of 0.8 per cent in passenger revenue compared with last year. Despite the challenges, the airline reaffirmed its financial guidance for the year that it issued in May. Results were slightly below expectations on higher-than-expected costs but overall fairly neutral, said RBC analyst James McGarragle in a note. 'We are taking a neutral view on the results, as the broader narrative of demand recovery and operational realignment remains intact despite the modest cost-related headwinds in the quarter.' MLB Ontario Sunshine Girls Toronto & GTA Toronto & GTA
Hamilton Spectator
20 hours ago
- Business
- Hamilton Spectator
Air Canada reports second-quarter earnings down in ‘challenging environment'
MONTREAL - Air Canada says second-quarter earnings were down from last year in what it characterized as a 'challenging environment.' Challenges include an 11 per cent drop in revenue in the airline's U.S. transborder routes that it attributed to geopolitical tensions and a lower Canadian dollar. The airline however saw increases in revenue from other areas, including its Atlantic and Latin American routes, as it redirected capacity, said chief executive Michael Rousseau in a statement. 'We have strategically redirected capacity to high-demand markets and captured demand for premium services, leveraging the breadth and strength of our global network.' Overall, the airline reported a net income of $186 million in the second quarter, down from $410 million in the same quarter last year. Air Canada says that on an adjusted basis, it had a net income of $207 million in the quarter compared with $369 million in the same quarter last year. Adjusted earnings worked out to 60 cents per diluted share in the quarter, compared to 98 cents per share last year. Analysts on average had expected an adjusted profit of 72 cents per diluted share, according to LSEG Data & Analytics. Passenger revenues in the quarter amounted to $5.03 billion, up one per cent from last year on a 2.5 per cent capacity growth. Revenue from its U.S. transborder segment was $961 million, down from $1.08 billion last year, while its Atlantic routes saw $1.64 billion in revenue, up from $1.56 billion last year. For the first six months of the year, revenue from U.S. flights were down 7.9 per cent and its Pacific routes were down 2.8 per cent, contributing to an overall drop of 0.8 per cent in passenger revenue compared with last year. Despite the challenges, the airline reaffirmed its financial guidance for the year that it issued in May. Results were slightly below expectations on higher-than-expected costs but overall fairly neutral, said RBC analyst James McGarragle in a note. 'We are taking a neutral view on the results, as the broader narrative of demand recovery and operational realignment remains intact despite the modest cost-related headwinds in the quarter.' This report by The Canadian Press was first published July 29, 2025. Companies in this story: (TSX:AC)
Cision Canada
2 days ago
- Business
- Cision Canada
Air Canada Reports Second Quarter 2025 Financial Results Français
Operating revenues of $5.632 billion, an increase of 2% versus last year. Operating income of $418 million with operating margin of 7.4% and adjusted EBITDA* of $909 million with adjusted EBITDA margin* of 16.1%. Premium revenues up 5% from the second quarter of 2024. Cash flow from operating activities of $895 million and free cash flow* of $183 million. Completion of $500 million substantial issuer bid, with approximately 296 million total issued and outstanding shares at June 30 2025. Leverage ratio* of 1.4 at June 30, 2025. MONTREAL, July 28, 2025 /CNW/ - Air Canada today reported its second quarter 2025 financial results. "Air Canada's second quarter 2025 results showcase the airline's many strengths in the face of a challenging environment. We generated operating revenues exceeding $5.6 billion, up $113 million from the previous year. Operating income was $418 million, with an operating margin of 7.4%, and adjusted EBITDA was $909 million, with an adjusted EBITDA margin of 16.1%. Operationally, we had an excellent spring, leading all major North American carriers in on-time performance for both May and June, which corresponded with strong gains in customer service scores. We remained disciplined and consistent in executing on a long-term plan that is rooted in Air Canada's proven commercial strategy, while navigating macroeconomic uncertainty and geopolitical tensions. We have strategically redirected capacity to high-demand markets and captured demand for premium services, leveraging the breadth and strength of our global network. Our results were further lifted by strong performances by Air Canada Cargo, Air Canada Vacations, and Aeroplan—each a key pillar of our diversified business," said Michael Rousseau, President and Chief Executive Officer of Air Canada. "Our distinctive product offerings and the unwavering dedication of our employees were recognized at the Skytrax World Airline Awards. We are proud to have been recognized as the Best Airline in North America and as the sole North American carrier ranked among the global top 20. Additionally, we have received additional accolades, including Best Cabin Crew in both Canada and North America. I extend my heartfelt thanks to our employees for their commitment to excellence and professionalism in safely transporting our 11.6 million customers this quarter with care and class." "A key pillar of our strategy is delivering value to our shareholders through effective capital allocation programs. Building on the successful reinstatement in 2024 of our normal course share purchase program, we completed a $500 million substantial issuer bid during the quarter, purchasing 26.6 million shares for cancellation. Since then, we have also fully repaid our convertible notes in cash upon maturity in July. As we look ahead, we are excited about our upcoming fleet additions and the opportunities they will unlock. Our confidence in our business outlook remains solid and we are reaffirming our financial guidance for the full year 2025." * Adjusted CASM, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted EBITDA margin, leverage ratio, net debt, adjusted pre-tax income (loss), adjusted net income (loss), adjusted earnings (loss) per share, and free cash flow are referred to in this news release. Such measures are non-GAAP financial measures, non-GAAP ratios, or supplementary financial measures, are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results. Refer to the "Non-GAAP Financial Measures" section of this news release for descriptions of these measures, and for a reconciliation of Air Canada non-GAAP measures used in this news release to the most comparable GAAP financial measure. Leverage ratio of 1.0 at June 30, 2024. Adjusted EBITDA and operating income for the trailing 12-month periods ended June 30, 2025 were $3.515 billion and $1.096 billion, respectively ($3.718 billion and $1.971 billion, respectively for the trailing 12-month periods ended June 30, 2024). Second Quarter 2025 Financial Results Operating revenues of $5.632 billion Operating expenses of $5.214 billion Operating income of $418 million with an operating margin of 7.4% and adjusted EBITDA of $909 million with an adjusted EBITDA margin of 16.1% Adjusted pre-tax income of $300 million Net income of $186 million and diluted earnings per share of $0.51 Adjusted net income of $207 million and adjusted earnings per diluted share of $0.60 Adjusted CASM* of 14.4 cents Net cash flows from operating activities of $895 million and free cash flow of $183 million Outlook For the third quarter of 2025, Air Canada plans to increase its ASM capacity between 3.25% and 3.75% from the same quarter in 2024. For the full year 2025, Air Canada is reiterating its guidance previously provided on May 8, 2025 and updating certain major assumptions. Full year 2025 guidance is as follows: Major Assumptions Air Canada made assumptions in providing its guidance—including a marginal Canadian GDP growth for 2025. Air Canada now assumes that the Canadian dollar will trade, on average, at C$1.39 per U.S. dollar for the full year 2025 (previously $1.40) and that the price of jet fuel will average C$0.92 (previously C$0.88) per litre for the full year 2025. Air Canada's guidance constitutes forward-looking information within the meaning of applicable securities laws and is subject to important risks and uncertainties, including in relation to statements or actions by governments and uncertainty relating to the imposition of (or threats to impose) tariffs on Canadian exports or imports and their resulting impacts on the Canadian, North American and global economies and travel demand. Please see the discussion below under Caution Regarding Forward-looking Information. 2028 Targets On December 17, 2024, Air Canada announced its long-term 2028 financial targets and 2030 aspirations described below: * Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted EBITDA margin, net cash flows from operating activities as a percentage of adjusted EBITDA, additions to property, equipment and intangible assets as a percentage of operating revenues, free cash flow margin and return on invested capital are referred to in this news release. Such measures are non-GAAP financial measures, non-GAAP ratios, or supplementary financial measures, are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results. The 2028 long-term targets and 2030 aspirations provided in this news release do not constitute guidance or outlook but rather are provided for the purpose of assisting the reader in measuring progress toward Air Canada's objectives. The reader is cautioned that using this information for other purposes may be inappropriate. Air Canada may review and revise these targets and aspirations including as economic, geopolitical, market and regulatory environments change. These targets and aspirations are used as goals as Air Canada executes on its strategic priorities, and they assume a normal business environment. Air Canada's ability to achieve these targets and aspirations is also dependent on its success in achieving initiatives and business objectives that are described in Air Canada's 2024 Investor Day presentations, which are available at including those relating to increasing revenues, growing fleet and network capacity, and successfully executing on other key investments and initiatives, as well as other major assumptions, including those described in this news release, and are subject to a number of risks and uncertainties. Non-GAAP Financial Measures Below is a description of certain non-GAAP financial measures and ratios used by Air Canada to provide readers with additional information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results. The non-GAAP financial measures or ratios described in this section typically have exclusions or adjustments that include one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of past or future operating results. These items are excluded because the company believes these may distort the analysis of certain business trends and render comparative analysis across periods less meaningful and their exclusion generally allows for a more meaningful analysis of Air Canada's operating expense performance and may allow for a more meaningful comparison to other airlines. Air Canada excludes the effect of impairment of assets, if any, when calculating adjusted CASM, adjusted EBITDA, adjusted EBITDA margin, adjusted pre-tax income (loss) and adjusted net income (loss) as it may distort the analysis of certain business trends and render comparative analysis across periods or to other airlines less meaningful. Adjusted CASM Air Canada uses adjusted CASM to assess the operating and cost performance of its ongoing airline business without the effects of aircraft fuel expense, the cost of ground packages at Air Canada Vacations, freighter costs and other items discussed above. These items may distort the analysis of certain business trends and render comparative analysis across periods less meaningful and their exclusion generally allows for a more meaningful analysis of Air Canada's operating expense performance and may allow for a more meaningful comparison to that of other airlines. In calculating adjusted CASM, aircraft fuel expense is excluded from operating expense results as it fluctuates widely depending on many factors, including international market conditions, geopolitical events, jet fuel refining costs and Canada/U.S. currency exchange rates. Air Canada also incurs expenses related to ground packages at Air Canada Vacations which some airlines, without comparable tour operator businesses, may not incur. In addition, these costs do not generate ASMs and therefore excluding these costs from operating expense results provides for a more meaningful comparison across periods when such costs may vary. Air Canada also incurs expenses related to the operation of freighter aircraft which some airlines, without comparable cargo businesses, may not incur. Air Canada had six Boeing 767 dedicated freighter aircraft in service as at June 30, 2025, and at June 30, 2024. These costs do not generate ASMs and therefore excluding these costs from operating expense results provides for a more meaningful comparison of the passenger airline business across periods. The following tables provide the adjusted CASM reconciliation to GAAP operating expense for the periods indicated. (Canadian dollars in millions, except where indicated) Full Year 2024 2023 Operating expense – GAAP $ 20,992 $ 19,554 Adjusted for: Aircraft fuel (5,118) (5,318) Ground package costs (782) (720) Freighter costs (excluding fuel) (163) (157) Provision for contractual lease obligations (34) - Pension plan amendments (490) - Operating expense, adjusted for the above-noted items 14,405 13,359 ASMs (millions) 104,381 99,012 Adjusted CASM (cents) ¢ 13.80 ¢ 13.49 Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and impairment) and adjusted EBITDA margin (adjusted EBITDA as a percentage of operating revenues) are commonly used in the airline industry and are used by Air Canada as a means to view operating results and the related margin before interest, taxes, depreciation, amortization and impairment and other items discussed above. These items can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. Adjusted EBITDA and adjusted EBITDA margin are reconciled to GAAP operating income (loss) as follows: Second Quarter First Six Months (Canadian dollars in millions, except where indicated) 2025 2024 Change 2025 2024 Change Operating income – GAAP $ 418 $ 466 $ (48) $ 310 $ 477 $ (167) Add back: Depreciation, amortization and impairment 491 448 43 986 890 96 Adjusted EBITDA $ 909 $ 914 $ (5) $ 1,296 $ 1,367 $ (71) Operating revenues $ 5,632 $ 5,519 $ 113 $ 10,828 $ 10,745 $ 83 Operating margin (%) 7.4 8.4 (1.0) pp 2.9 4.4 (1.5) pp Adjusted EBITDA margin (%) 16.1 16.6 (0.5) pp 12.0 12.7 (0.7) pp Adjusted Pre-tax Income (Loss) Adjusted pre-tax income (loss) is used by Air Canada to assess the overall pre-tax financial performance of its business without the effects of foreign exchange gains or losses, net interest relating to employee benefits, gains or losses on financial instruments recorded at fair value, gains or losses on sale and leaseback of assets, gains or losses on disposal of assets, gains or losses on debt settlements and modifications and other items discussed above. These items may distort the analysis of certain business trends and render comparative analysis across periods or to other airlines less meaningful. A corporate charge for the settlement of tax matters related to the 2019 acquisition of Aeroplan was recorded in the second quarter of 2025. As this item is non-recurring and cash-neutral to Air Canada, since it recorded a related tax refund, it has been excluded from adjusted pre-tax income. Adjusted pre-tax income is reconciled to GAAP income (loss) before income taxes as follows: Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share – Diluted Air Canada uses adjusted net income (loss) and adjusted earnings (loss) per share – diluted as a means to assess the overall financial performance of its business without the after-tax effects of foreign exchange gains or losses, net financing expense relating to employee benefits, gains or losses on financial instruments recorded at fair value, gains or losses on sale and leaseback of assets, gains or losses on debt settlements and modifications, gains or losses on disposal of assets and other items discussed above. These items may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful. A corporate charge for the settlement of tax matters related to the 2019 acquisition of Aeroplan was recorded in the second quarter of 2025. As this item is non-recurring and cash-neutral to Air Canada, since it recorded a related tax refund, it has been excluded from adjusted net income. Adjusted net income and adjusted earnings per share are reconciled to GAAP net income as follows: The table below reflects the share amounts used in the computation of basic and diluted earnings per share on an adjusted earnings per share basis: Free Cash Flow Air Canada uses free cash flow as an indicator of the financial strength and performance of its business, indicating the amount of cash Air Canada can generate from operations and after capital expenditures. Free cash flow is calculated as net cash flows from operating activities minus additions to property, equipment, and intangible assets, and is net of proceeds from sale and leaseback transactions. The table below reconciles free cash flow to net cash flows from (used in) operating activities for the periods indicated. Net Debt Net debt is a capital management measure and a key component of the capital managed by Air Canada and provides management with a measure of its net indebtedness. Net Debt to Trailing 12-Month Adjusted EBITDA (Leverage Ratio) Net debt to trailing 12-month adjusted EBITDA ratio (also referred to as "leverage ratio") is commonly used in the airline industry and is used by Air Canada as a means to measure financial leverage. Leverage ratio is calculated by dividing net debt by trailing 12-month adjusted EBITDA. The table below reconciles leverage ratio to Air Canada's net debt balances as at the dates indicated. The tables below present comparative figures for the twelve-month periods ending December 31, 2023 and 2024, in reference to Air Canada's full-year 2025 guidance, 2028 financial targets, and 2030 aspirations. (Canadian dollars in millions, except where indicated) 2024 1 2023 1 Operating revenues $22.255 billion $21.833 billion Adjusted EBITDA margin 16 % 18 % Operating margin 6 % 10 % Net cash flows from operating activities as a percentage of adjusted EBITDA 110 % 108 % Additions to property, equipment and intangible assets as a percentage of operating revenues 12 % 7 % Free cash flow margin 6 % 13 % Return on invested capital 14 % 18 % Income before income taxes $515 million $2.212 billion Fully diluted share count Approximately 376 million shares Approximately 376 million shares 1 Percentage amounts in the table above may not calculate exactly due to rounding. The 2028 long-term targets and 2030 aspirations provided in this news release do not constitute guidance or outlook but rather are provided for the purpose of assisting the reader in measuring progress toward Air Canada's objectives. The reader is cautioned that using this information for other purposes may be inappropriate. Air Canada may review and revise these targets and aspirations including as economic, geopolitical, market and regulatory environments change. These targets and aspirations are used as goals as Air Canada executes on its strategic priorities, and they assume a normal business environment. Air Canada's ability to achieve these targets and aspirations is also dependent on its success in achieving initiatives and business objectives that are described in Air Canada's 2024 Investor Day presentations, which are available at including those relating to increasing revenues, growing fleet and network capacity, and successfully executing on other key investments and initiatives, as well as other major assumptions, including those described in this news release, and are subject to a number of risks and uncertainties. Net cash flows from operating activities as a percentage of adjusted EBITDA Air Canada uses net cash flows from operating activities as a percentage of adjusted EBITDA to measure cash conversion from adjusted EBITDA. This measure is defined as the ratio of net cash flows from operating activities to adjusted EBITDA. Additions to property, equipment and intangible assets as a percentage of operating revenues Air Canada uses additions to property, equipment and intangible assets as a percentage of operating revenues to measure the proportion of operating revenues that are reinvested as capital expenditures. This measure is defined as the ratio of additions to property, equipment and intangible assets to operating revenues. Free cash flow margin Air Canada uses free cash flow margin to measure the amount its free cash flow represents as a percentage of operating revenues. This measure is defined as the ratio of free cash flow to operating revenues. The table below presents the quantitative reconciliation for adjusted EBITDA, adjusted EBITDA margin, net cash flows from operating activities as a percentage of adjusted EBITDA, additions to property, equipment and intangible assets as a percentage of operating revenues, free cash flow and free cash flow margin, in each case for the financial years ended December 31, 2024 and 2023. (in millions, except where indicated) 2024 2023 Total operating revenues – GAAP $ 22,255 $ 21,833 Operating income – GAAP $ 1,263 $ 2,279 Add back: Depreciation and amortization 1,799 1,703 EBITDA 3,062 3,982 Add back: Provision for contractual lease obligations 34 - Pension plan amendments 490 - Adjusted EBITDA $ 3,586 $ 3,982 Net cash flows from operating activities $ 3,930 $ 4,320 Additions to property, equipment and intangible assets (2,636) (1,564) Free cash flow $ 1,294 $ 2,756 Operating margin 6 % 10 % Adjusted EBITDA margin 16 % 18 % Net cash flows from operating activities as a percentage of adjusted EBITDA 110 % 108 % Additions to property, equipment and intangible assets as a percentage of operating revenues 12 % 7 % Free cash flow margin 6 % 13 % Return on invested capital Air Canada uses return on invested capital (ROIC) to assess the efficiency with which it allocates its capital to generate returns. ROIC is calculated as the ratio of adjusted pre-tax income (loss), excluding interest expense, to invested capital. Invested capital includes average year-over-year long-term debt and lease obligations, average year-over-year shareholders' equity, and the embedded derivative on Air Canada's convertible notes. In 2020, Air Canada issued convertible unsecured notes. Air Canada had the option to deliver cash or a combination of cash and shares on the conversion date in lieu of shares, giving rise to an embedded derivative that was included as part of the definition of capital. Air Canada calculates invested capital on a book value-based method when calculating ROIC. Return on invested capital is reconciled to GAAP income (loss) before income taxes as follows: (in millions, except where indicated) 2024 2023 Income before income taxes – GAAP $ 515 $ 2,212 Adjusted for: Provision for contractual lease obligations 34 - Pension plan amendments 490 - Foreign exchange (gain) loss 400 (389) Net interest relating to employee benefits (22) (25) (Gain) on financial instruments recorded at fair value (28) (115) Loss on debt settlements and modifications 8 10 Adjusted pre-tax income $ 1,397 $ 1,693 Add back: Interest expense 763 944 Adjusted pre-tax income before interest expense $ 2,160 $ 2,637 Invested capital: Average long-term debt and lease liabilities (including current portion) 13,266 15,084 Embedded derivative on convertible notes 45 56 Average shareholders' equity (deficiency) 1,592 (380) Invested capital $ 14,903 $ 14,761 Return on invested capital (%) 14 % 18 % Second Quarter 2025 Conference Call Air Canada will host its quarterly analysts' call on Tuesday, July 29, 2025, at 8:00 a.m. ET. Michael Rousseau, President and Chief Executive Officer, John Di Bert, Executive Vice President and Chief Financial Officer, and Mark Galardo, Executive Vice President and Chief Commercial Officer and President, Cargo, will present the results and be available for analysts' questions. Immediately following the analysts' Q&A session, Mr. Di Bert and Pierre Houle, Vice President and Treasurer, will be available to answer questions from term loan B lenders and holders of Air Canada bonds. Media and the public may access this call on a listen-in basis. Details are as follows: CAUTION REGARDING FORWARD-LOOKING INFORMATION This news release includes forward-looking statements within the meaning of applicable securities laws. Forward-looking statements relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These statements may involve, but are not limited to, comments relating to guidance, strategies, expectations, planned operations or future actions. Forward-looking statements are identified using terms and phrases such as "preliminary"; "anticipate"; "believe"; "could"; "estimate"; "expect"; "intend"; "may"; "plan"; "predict"; "project"; "will"; "would"; and similar terms and phrases, including references to assumptions. Forward-looking statements, by their nature, are based on assumptions including those described herein and are subject to important risks and uncertainties, which are amplified in the current environment. Forward-looking statements cannot be relied upon due to, among other things, changing external events and general uncertainties of the business of Air Canada. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including those discussed below. Factors that may cause results to differ materially from results indicated in forward-looking statements include economic conditions, statements or actions by governments and uncertainty relating to the imposition of (or threats to impose) tariffs on Canadian exports or imports and their resulting impacts on the Canadian, North American and global economies and travel demand, geopolitical conditions such as the military conflicts in the Middle East and between Russia and Ukraine, Air Canada's ability to successfully achieve or sustain positive net profitability, industry and market conditions and the demand environment, competition, Air Canada's dependence on technology, cybersecurity risks, interruptions of service, climate change and environmental factors (including weather systems and other natural phenomena and factors arising from anthropogenic sources), Air Canada's dependence on key suppliers (including government agencies and other stakeholders supporting airport and airline operations), employee and labour relations and costs, Air Canada's ability to successfully implement appropriate strategic and other important initiatives (including Air Canada's ability to manage operating costs), energy prices, Air Canada's ability to pay its indebtedness and maintain or increase liquidity, Air Canada's dependence on regional and other carriers, Air Canada's ability to attract and retain required personnel, epidemic diseases, changes in laws, regulatory developments or proceedings, terrorist acts, war, Air Canada's ability to successfully operate its loyalty program, casualty losses, Air Canada's dependence on Star Alliance® and joint ventures, Air Canada's ability to preserve and grow its brand, pending and future litigation and actions by third parties, currency exchange fluctuations, limitations due to restrictive covenants, insurance issues and costs, and pension plan obligations as well as the factors identified in Air Canada's public disclosure file available at and, in particular, those identified in section 18 "Risk Factors" of Air Canada's 2024 MD&A and in section 14 "Risk Factors" of Air Canada's Second Quarter 2025 MD&A. Air Canada has and continues to establish targets, make commitments and assess the impact regarding climate change, and related initiatives, plans and proposals that Air Canada and other stakeholders (including government, regulatory and other bodies) are pursuing in relation to climate change and carbon emissions. The achievement of our commitments and targets depends on many factors, including the combined actions of governments, industry, suppliers and other stakeholders and actors, as well as the development and implementation of new technologies. In particular, our 2030 carbon emission-related targets and our related 2050 aspiration are ambitious and heavily dependent on new technologies, renewable energies and the availability of a sufficient supply of sustainable aviation fuels (SAF), which continues to present serious challenges. In addition, Air Canada has incurred, and expects to continue to incur, costs to achieve its goal of net-zero carbon emissions and to comply with environmental sustainability legislation and regulation and other standards and accords. The precise nature of future binding or non-binding legislation, regulation, standards and accords, on which local and international stakeholders are increasingly focusing, cannot be predicted with any degree of certainty, nor can their financial, operational or other impact. There can be no assurance of the extent to which any of our climate goals will be achieved or that any future investments that we make in furtherance of achieving our climate goals will produce the expected results or meet increasing stakeholder environmental, social and governance expectations. Moreover, future events could lead Air Canada to prioritize other nearer-term interests over progressing toward our current climate goals based on business strategy, economic, regulatory and social factors, and potential pressure from investors, activist groups or other stakeholders. If we are unable to meet or properly report on our progress toward achieving our climate change goals and commitments, we could face adverse publicity and reactions from investors, customers, advocacy groups or other stakeholders, which could result in reputational harm or other adverse effects to Air Canada. The forward-looking statements contained or incorporated by reference in this news release represent Air Canada's expectations as of the date of this news release (or as of the date they are otherwise stated to be made) and are subject to change after such date. However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statements whether because of new information, future events or otherwise, except as required under applicable securities regulations. Selected Financial Metrics and Statistics The financial and operating highlights for Air Canada for the periods indicated are as follows: Second Quarter First Six Months Financial Performance Metrics 2025 2024 $ Change 2025 2024 $ Change Operating revenues 5,632 5,519 113 10,828 10,745 83 Operating income 418 466 (48) 310 477 (167) Operating margin (1) (%) 7.4 8.4 (1.0) pp (8) 2.9 4.4 (1.5) pp Adjusted EBITDA (2) 909 914 (5) 1,296 1,367 (71) Adjusted EBITDA margin (2) (%) 16.1 16.6 (0.5) pp 12.0 12.7 (0.7) pp Income (loss) before income taxes 103 404 (301) (64) 339 (403) Net income 186 410 (224) 84 329 (245) Adjusted pre-tax income (2) 300 371 (71) 85 277 (192) Adjusted net income (2) 207 369 (162) 57 273 (216) Total liquidity (3) 8,364 10,203 (1,839) 8,364 10,203 (1,839) Net cash flows from operating activities 895 924 (29) 2,421 2,516 (95) Free cash flow (2) 183 451 (268) 1,014 1,507 (493) Net debt (2) 4,757 3,608 1,149 4,757 3,608 1,149 Long-term debt and lease liabilities 11,794 12,477 (683) 11,794 12,477 (683) Diluted earnings per share 0.51 1.04 (0.53) 0.10 0.87 (0.77) Adjusted earnings per share – diluted (2) 0.60 0.98 (0.38) 0.16 0.73 (0.57) Operating Statistics (4) 2025 2024 % Change 2025 2024 % Change Revenue passenger miles (RPMs) (millions) 22,796 22,449 1.5 42,683 42,969 (0.7) Available seat miles (ASMs) (millions) 26,860 26,203 2.5 51,100 50,540 1.1 Passenger load factor % 84.9 % 85.7 % (0.8) pp 83.5 % 85.0 % (1.5) pp Passenger revenue per RPM (Yield) (cents) 22.1 22.2 (0.7) 21.9 22.0 (0.1) Passenger revenue per ASM (PRASM) (cents) 18.7 19.0 (1.7) 18.3 18.7 (1.8) Operating revenue per ASM (TRASM) (cents) 21.0 21.1 (0.5) 21.2 21.3 (0.3) Operating expense per ASM (CASM) (cents) 19.4 19.3 0.6 20.6 20.3 1.3 Adjusted CASM (cents) (2) 14.4 13.5 6.4 14.8 14.1 4.9 Average number of full-time-equivalent (FTE) employees (thousands) (5) 37.3 37.2 0.2 37.2 37.1 0.5 Aircraft in operating fleet at period-end 364 356 2.2 364 356 2.2 Seats dispatched (thousands) 14,478 14,213 1.9 27,817 27,692 0.4 Aircraft frequencies (thousands) 98.5 97.9 0.6 189.9 188.9 0.5 Average stage length (miles) (6) 1,855 1,844 0.6 1,837 1,825 0.7 Fuel cost per litre (cents) 88.0 104.3 (15.7) 92.9 104.9 (11.4) Fuel litres (thousands) 1,271,963 1,273,467 (0.1) 2,463,407 2,458,185 0.2 Revenue passengers carried (thousands) (7) 11,551 11,588 (0.3) 21,934 22,339 (1.8) (1) Operating margin is a supplementary financial measure and is defined as operating income (loss) as a percentage of operating revenues. (2) Adjusted pre-tax income (loss), adjusted net income (loss), adjusted earnings (loss) per share, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted EBITDA margin, free cash flow, net debt and adjusted CASM are non-GAAP financial measures, capital management measures, non-GAAP ratios or supplementary financial measures. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results. Refer to section "Non-GAAP Financial Measures" of this release for descriptions of Air Canada's non-GAAP financial measures and for a quantitative reconciliation of Air Canada's non-GAAP financial measures to the most comparable GAAP measure. (3) Total liquidity refers to the sum of cash, cash equivalents, short and long-term investments, and the amounts available under Air Canada's credit facilities. Total liquidity, as at June 30, 2025, of $8,364 million consisted of $7,037 million in cash, cash equivalents, short- and long-term investments and $1,327 million available under undrawn credit facilities. As at June 30, 2024, total liquidity of $10,203 million consisted of $8,869 million in cash, cash equivalents, short- and long-term investments and $1,334 million available under undrawn credit facilities. These amounts also include funds ($168 million as at June 30, 2025, and $181 million as at June 30, 2024) held in trust by Air Canada Vacations in accordance with regulatory requirements governing advance sales for tour operators. (4) Except for the reference to average number of full-time equivalent (FTE) employees, operating statistics in this table include third party carriers operating under capacity purchase agreements with Air Canada. (5) Reflects FTE employees at Air Canada and its subsidiaries. Excludes FTE employees at third-party carriers operating under capacity purchase agreements with Air Canada. (6) Average stage length is calculated by dividing the total number of available seat miles by the total number of seats dispatched.
Cision Canada
10-07-2025
- Business
- Cision Canada
Air Canada Foundation's 13th Annual Golf Tournament Nets $1.3 Million Français
The annual golf tournament is the Foundation's largest fundraiser, helping make a meaningful difference in the lives of children and youth across Canada. In 2024, the Foundation donated $1.8 million to organizations that help kids spread their wings Over the past 13 years, the Foundation has raised more than $19 million for the health and well-being of children and youth MONTREAL, July 10, 2025 /CNW/ - The Air Canada Foundation hosted its 13 th annual Golf Tournament. The event, held at Club de golf Le Mirage in Terrebonne, Quebec raised $1.3 million to support the health and well-being of children and youth across Canada. This year's event welcomed 296 guests and over 90 sponsors, including corporate partners, suppliers, and vendors who generously supported the Air Canada Foundation's largest fundraiser of the year. These funds will be disbursed through the Foundation's annual grants program, providing much-needed support for children and youth from equity-deserving communities, and empowering children to soar toward their full potential. "Each year, I look forward to this day with great anticipation. That is because apart from being an opportunity to meet old friends, make new ones and enjoy a round of golf — it's about coming together to support children and youth across Canada. This tournament is a testament to the power of unity and how, when we rally together, we can create meaningful change and bring joy to deserving families and communities. I thank all those who participate in this great event and support it in so many ways to make this day a success every year," said Michael Rousseau, President and Chief Executive Officer at Air Canada. "Once again we celebrate the remarkable generosity of Air Canada's partners and friends," said Priscille LeBlanc, Chair of the Air Canada Foundation. "A heartfelt thank you to all of them and also to our volunteers for their support in helping us make a lasting difference in the lives of children and families. Their ongoing commitment attests what we can achieve working together towards a shared mission." In 2024, the Air Canada Foundation donated $1.8 million to charitable organizations across Canada. These donations helped provide approximately 900,000 meals to address food insecurity, including vital support for schools in Indigenous communities, and offered healthy meals to children during the summer period when schools are closed. It also contributed to the well-being and quality of life of many children and their families through the Dr. Clown Foundation's social pediatrics program in the Atikamekw community of Manawan in Quebec. The tournament was organized and hosted by Air Canada employees, including those who shared their special talents with guests, such as Yoko Sawai, Customer Experience Specialist, who played piano during the cocktail reception. The Dr. Clown Foundation, long-term partner of the Foundation, was on site to interact with and delight guests, participate in photos, and share the meaningful impact of its therapeutic clown programs in hospitals and Indigenous communities. Tye, Chloe and Mohamed, representing HEROS Hockey, a volunteer-driven charity that teaches life skills and empowers marginalized youth through hockey, ran the highly popular lemonade stand and raised over $12,000. New this year, The Plinko of Generosity, an interactive game featuring our Autism Aviation Days helped support local autism organizations across the country by donating close to $15,000 on behalf of participants and volunteers. Last month, the Air Canada Foundation unveiled its 2024 Impact Report, showcasing the significant contributions made to communities throughout the year. The report highlights achievements across various areas, including programs, partnerships, fundraising efforts, and employee engagement initiatives. About the Air Canada Foundation The Air Canada Foundation, a not-for-profit organization focused on the health and well-being of children and youth, was launched in 2012. It offers both financial and in-kind support to Canadian-registered charities. Core programs include the Hospital Transportation Program, which redistributes Aeroplan points to 15 pediatric hospitals across Canada, enabling sick children to access the medical care they need away from home. The Air Canada Foundation, in collaboration with the airline, also engages directly in fundraising activities, such as the Every Bit Counts program, which encourages customers to donate loose change of all denominations on board flights or through collection containers available in Air Canada Maple Leaf Lounges. The Foundation also offers continued support to major health-related causes that benefit Canadians and is an active participant in international humanitarian relief activity as the need arises. For more information about the Air Canada Foundation, please read the 2024 Impact Report. About Air Canada Air Canada is Canada's largest airline, the country's flag carrier and a founding member of Star Alliance, the world's most comprehensive air transportation network. Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and Internationally on six continents. It holds a Four-Star ranking from Skytrax. Air Canada's Aeroplan program is Canada's premier travel loyalty program, where members can earn or redeem points on the world's largest airline partner network of 45 airlines, plus through an extensive range of merchandise, hotel and car rental partners. Through Air Canada Vacations, it offers more travel choices than any other Canadian tour operator to hundreds of destinations worldwide, with a wide selection of hotels, flights, cruises, day tours, and car rentals. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using Air Canada's passenger and freighter aircraft. Air Canada's climate-related ambition includes a long-term aspirational goal of net-zero greenhouse gas emissions by 2050. For additional information, please see Air Canada's TCFD disclosure. Air Canada shares are publicly traded on the TSX in Canada and the OTCQX in the US. Sign up for Air Canada news: Media Resources: Photos Videos B-Roll Articles SOURCE Air Canada
Cision Canada
17-06-2025
- Business
- Cision Canada
Air Canada Named Best Airline in North America at the 2025 Skytrax World Airline Awards Presented at the Paris Air Show Français
Airline wins nine awards, including World's Best Business Class Lounge Dining for the Air Canada Signature Suite and Best Cabin Crew in North America MONTRÉAL, June 17, 2025 /CNW/ - Air Canada today was named the Best Airline in North America at the 2025 Skytrax World Airline Awards. Presented at the Paris Air Show, the Skytrax awards, which are based on customer satisfaction surveys of approximately 22 million global travellers, also recognized the Toronto Air Canada Signature Suite as the World's Best Business Class Lounge Dining for the second straight year, as well as its flight attendants as Best Cabin Crew in Canada and North America. Air Canada also took home additional honours for the Best Low-Cost Airline for its Rouge subsidiary, Most Family Friendly Airline in North America, Best Premium Economy Class Onboard Catering in North America, Best Business Class Onboard Catering in North America, and Best Business Class Lounge in North America. "We are tremendously proud that Air Canada has been named the Best Airline in North America at the 2025 Skytrax World Airline Awards. I thank our customers, the people who know our products and services best, for voting for us and for their loyalty in choosing to fly with Air Canada. I congratulate our 40,000 global employees, who are the true winners of this award, and I thank them for their professionalism in taking care of our customers and transporting them safely with glowing-hearted hospitality. I am pleased but not surprised to see their work elevating the customer experience recognized on a global stage," said Michael Rousseau, President and Chief Executive Officer at Air Canada. "In North America, we are Canada's flag carrier competing successfully against the world's largest and best airlines, which makes this award very significant. But while today we are celebrating, we are not letting up. Our commitment is to rise even higher – through new products, services, and delivering with care and class, positive customer experiences as we share the best of Canada with the entire world – to keep earning our customers' loyalty far into the future." "We are also very proud of the awards given our cabin crews as Best Cabin Crew in Canada and North America. These recognize the efforts our crews make every day to treat our customers with care and class." These awards celebrate Air Canada's industry leadership and the airline's success enhancing all aspects of the travel experience as voted by customers. Recent product and service upgrades include the introduction of fast, free Wi-Fi, a revised app with more functionalities, complimentary in-flight snacks and beverages, increased content on its award-winning in-flight entertainment system, new and refurbished lounges, streamlined airport processes, an award-winning loyalty program, and intermodal travel options all on one ticket. Other recognitions Air Canada has recently received for excellence include: About the Air Canada Signature Suite Air Canada presents two Signature Suite lounges for departing international customers at Toronto Pearson and Vancouver International airports. Recognized by the Skytrax World Airline Awards for the World's Best Business Class Lounge Dining at the Air Canada Signature Suite at Toronto Pearson, our menu showcases Canada's diverse ingredients through refined, locally inspired dishes that evolve with the seasons. The experience is complemented by a curated wine list featuring standout Canadian and international labels, emphasizing craftsmanship and the unique character of Canada's wine regions. Our cocktail menu, crafted with premium ingredients and creative flair, draws from global trends to deliver a memorable, elevated experience. Designed to evoke a Canadian sense of place, each Signature Suite reflects the beauty, warmth, and sophistication of the country it represents. About the Skytrax World Airline Awards The World Airline Awards are wholly independent and impartial, introduced in 1999 to provide a customer satisfaction study that is truly global. Travellers across the world vote in the largest airline passenger satisfaction survey to determine the award winners. The awards are referred to by media around the world as "the Oscars of the aviation industry". All costs of the Survey and Awards event are paid by Skytrax, and airlines do not pay any entry or registration fee. There are no charges for use of the Award logos and results. The online survey operated from September 2024 to May 2025, and more than 100 customer nationalities participated, with 22.3 million eligible entries counted in the results. All survey entries were screened to identify IP and user information, with duplicate, suspect and ineligible entries deleted. Over 300 airlines are featured in the 2024/2025 survey results. The customer survey was offered in English, French, Portuguese, Spanish, Turkish, Russian, Japanese, and Chinese. About Air Canada Air Canada is Canada's largest airline, the country's flag carrier and a founding member of Star Alliance, the world's most comprehensive air transportation network. Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and Internationally on six continents. It holds a Four-Star ranking from Skytrax. Air Canada's Aeroplan program is Canada's premier travel loyalty program, where members can earn or redeem points on the world's largest airline partner network of 45 airlines, plus through an extensive range of merchandise, hotel and car rental partners. Through Air Canada Vacations, it offers more travel choices than any other Canadian tour operator to hundreds of destinations worldwide, with a wide selection of hotels, flights, cruises, day tours, and car rentals. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using Air Canada's passenger and freighter aircraft. Air Canada's climate-related ambition includes a long-term aspirational goal of net-zero greenhouse gas emissions by 2050. For additional information, please see Air Canada's TCFD disclosure. Air Canada shares are publicly traded on the TSX in Canada and the OTCQX in the US. Media Resources: Photos Videos B-Roll Articles SOURCE Air Canada
