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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.
The Advertiser
3 days ago
- The Advertiser
Why this economy cabin feels surprisingly luxe on the long haul to Hong Kong
Flying to the US via Hong Kong might not seem like an obvious choice, but it does offer the opportunity to break up the journey in one of my favourite cities. With Cathay Pacific awarded world's best economy cabin and best in-flight entertainment at the Skytrax World Airline Awards, it's an excellent choice, whether you're heading to North America, Europe or Asia.
Time of India
7 days ago
- Business
- Time of India
Best US budget airlines revealed - one offers flights starting at just $38
Live Events Why is Allegiant Airlines topping the charts in 2025? Who else made the list of top U.S. budget airlines? FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Snagging a cheap flight is fantastic, until it comes with endless delays and no legroom. However, one US airline is changing that image. Apparently, it seems that one North American airline has struck the ideal balance, offering flights for as low as $ Skytrax World Airline Awards state that one airline successfully balances quality and affordability. For the second time in two years, Allegiant Airlines won the title of best low-cost airline in North America at the June awards Airlines has been named the best low-cost airline in North America at the 2025 Skytrax World Airline Awards. Allegiant, which connects smaller cities to popular vacation destinations, offers fares as low as $38. The award recognizes Allegiant's dedication to value, dependability, and passenger satisfaction in budget number 15 in the global rankings, Allegiant was also recognized as the top low-cost airline in the United a statement after the awards, Allegiant's president and CEO, Gregory C. Anderson, stated:"As a leisure focused airline, our unique business model bridges the gap in connecting small-to-medium sized cities to premier vacation destinations.' "This accolade is a testament to the hard work of our team members and acknowledges Allegiant's long history of providing exceptional service at unbeatable value for our customers,' as quoted in a report by The US Sun."We work hard to give our customers a smooth, cozy, and convenient travel experience, and this recognition validates our efforts," he Airlines, based in Las Vegas, focuses on linking neglected small and medium-sized towns such as Provo, Utah; Orange County, California; and Knoxville, Tennessee. The airline provides flights commencing at $38 and has been acknowledged by Skytrax as North America's premier low-cost company's customer-centric strategy has garnered consecutive accolades as North America's premier low-cost airline. Skytrax evaluated more than 325 airlines according to consumer feedback, with the 2025 rankings derived from 22.3 million questionnaires, as per a report by The US Allegiant, Southwest Airlines secured second place, with Sun Country Airlines ranking third. Air Canada Rouge, Frontier Airlines, and Spirit Airlines rounded out the top six for North AirAsia took the No. 1 spot among low-cost airlines, followed by Scoot (Singapore), IndiGo (India), Eurowings (Germany), and Vueling Airlines (Spain).These rankings were based on more than 22 million customer surveys conducted worldwide, with no payment or incentives offered for participation. The results reflect real feedback from travelers who rated everything from ticket prices and onboard service to comfort and budget-conscious travel on the rise, Allegiant Airlines is proving that cheap flights don't have to come at the cost of service or comfort. Their focus on smaller cities and low fares, combined with reliable, no-frills service, is winning over American travelers and setting a new standard for affordable air travel in ranked Allegiant Airlines first among U.S. low-cost offers fares as low as $38 for certain routes.
Indian Express
19-07-2025
- Business
- Indian Express
Top 10 best airlines in the world: See if any Indian airline makes the cut
Top 10 best airlines in the world: Choosing the right airline can have a real impact on your travel experience, especially on long-haul international flights where comfort, timeliness, and good service is more than just desirable; it is essential. From legroom and service to inflight meals and entertainment, the difference between a good flight and a great one can be vast. That's where the Skytrax World Airline Awards – often dubbed the 'Oscars of the aviation industry' – come in. Based on millions of passenger reviews across categories, they offer one of the most respected barometers of excellence in the skies. In the 2025 edition, the rankings reflect how fiercely global airlines are competing not just to raise standards but to distinguish themselves regionally and experientially. Whether you're a frequent flyer or an occasional traveller, knowing who is leading the way can help you make travel decisions, Unsurprisingly, Qatar Airways continues its reign with a record-breaking ninth title as the World's Best Airline—more than any other airline in Skytrax history. It leads a mix of legacy giants and regional heavyweights that are pushing the boundaries of comfort, innovation and sustainability. While no Indian airline made it to the global top 10 this year, the competition makes clear what it takes to be world-class—from elevated design and service to eco-conscious operations. Source: Skytrax World Airline Awards At the 2025 Skytrax Awards, Qatar Airways has been awarded 'World's Best Airline', reconfirming its position as a world leader. Based in Doha, Qatar Airways continues to provide luxury and world-class service to more than 170 destinations. As of this year, it has become the first Middle Eastern airline to receive the highest level of certification with IATA's Environmental Assessment (IEnvA) programme. Singapore Airlines, ranked the world's second-largest airline, has unveiled a revamped A380 cabin as part of an $850 million upgrade. Known for flying some of the world's most advanced and fuel-efficient aircraft, its fleet includes the Airbus A350, A380, and Boeing 777-300ER. Cathay Pacific, headquartered in Hong Kong and part of the Swire Group, was voted the third best airline in the 2025 Skytrax World Airline Awards. The airline won the award for 'World's Best Economy Class Airline,' as well as AIrbis' 'Best Inflight Entertainment in the world'. With three, two Michelin starred, dining, refreshed cabins, and fleet-wide connectivity, Emirates, based in Dubai as part of The Emirates Group, is one of the largest airlines in the world, servicing cities across six continents. It has a reputation for comfortable cabins and reliable service, and it is also advancing sustainable practices by way of measures to reduce emissions, improve fuel efficiency, and aid in wildlife conservation. All Nippon Airways (ANA), based in Minato City, Tokyo, is a leading global carrier under ANA Holdings Inc. Known for its outstanding service and consistent top-tier rankings, ANA operates flights to 42 international cities and about 50 domestic locations across Japan. Established in 1933, Turkish Airlines has become a major global airline with services to 130 countries and a fleet size of over 480 aircraft. Almost 50 percent state owned, Turkish Airlines has built a stalwart reputation for great service, competitive pricing, fabulous catering and entertainment. Turkish Airlines was recognized as the Best Airline in Europe by the Skytrax World Airline Awards in 2025. Korean Air is ranked seventh in the 2025 Skytrax World Airline Awards and is gaining its global footprint as part of the Hanjin Group based in Seoul. After its merger with Asiana Airlines, the airline will expand its authority as a full-service provider in Asia. The airline also emphasizes sustainability with its GREEN SKYPASS program. Loyalty members are able to begin supporting carbon neutrality by further developing eco-friendly forests. Air France has moved up to eighth place in the 2025 Skytrax World Airline Awards, improving on last year's ninth spot. Part of the Air France-KLM Group, the airline has now held the title of Best Airline in Western Europe for five straight years, thanks to its top-tier First Class and refined lounge experience. Backed by strong global ties and a wide-reaching network, it remains a key player in international aviation. Japan Airlines, part of the JAL Group, has earned its spot among the world's top airlines, consistently praised for its spotless cabins, reliable punctuality, and refined in-flight service. With a 5-Star Skytrax rating for eight years running and the launch of the A350-1000, the airline continues to set high standards across global and domestic routes. Hainan Airlines, known for its exceptional service and recognition from the Skytrax World Airline Awards, rounds off the world's top 10 largest airlines. With the recent addition of its first Airbus A321neo, the carrier is strengthening its international and regional reach. Backed by a solid safety record and over 1,700 routes, it remains a major force in China's expanding global aviation footprint.
Cision Canada
10-07-2025
- Business
- Cision Canada
Transat A.T. Inc. and CEEFC Announce Closing of the Restructuring of the LEEFF Debt Français
MONTREAL, July 10, 2025 /CNW/ - Transat A.T. Inc. ("Transat" or the "Corporation") announced today that it has closed the restructuring of the indebtedness incurred by Transat under the Large Enterprise Emergency Funding Facility (LEEFF) program managed by Canada Enterprise Emergency Funding Corporation ("CEEFC") as previously communicated on June 5, 2025 (the "Transaction"). Following the Transaction, the Corporation's outstanding debt with CEEFC is reduced to $334M from $772M as at March 31, 2025. The agreement deals with the entire indebtedness of the Corporation with CEEFC, and results in such indebtedness, in a principal amount of approximately $772M in the aggregate as at March 31, 2025, having been restructured as follows: Repayment of $41.4M in cash to CEEFC Credit facilities reduced to a single credit facility of $175M Issuance to CEEFC of a $158,735,045 debenture maturing in 10 years Issuance to CEEFC of $16,264,955 of preferred shares convertible into 9,934,617 Class B Voting Shares representing 19.9% of the issued and outstanding voting shares of Transat based on the 5-day VWAP on June 5, 2025) at any time after the earlier of the second anniversary of closing and the redemption of preferred shares for proceeds of $16,264,955 pursuant to mandatory prepayment events. (1) Please refer to the Corporation's press release of June 5, 2025 for a more detailed description of the Transaction and its main components. About Transat Founded in Montreal in 1987, Transat has achieved worldwide recognition as a provider of leisure travel particularly as an airline under the Air Transat brand. Voted World's Best Leisure Airline by passengers at the 2025 Skytrax World Airline Awards, it flies to international destinations. Air Transat's fleet includes some of the most energy-efficient aircraft in their category. Based in Montreal, Transat has 5,000 employees with a common purpose to bring people closer together. (TSX: TRZ) About CEEFC CEEFC is a federal Crown corporation, incorporated in May 2020 under the Canada Business Corporations Act and is a wholly owned subsidiary of Canada Development Investment Corporation. CEEFC currently manages the Large Employer Emergency Financing Facility (LEEFF) program and the Large Enterprise Tariff Loan (LETL) facility. (1) Note: Between the holding of share purchase warrants and convertible preferred shares, CEEFC will hold securities exercisable or convertible for an aggregate of 19,371,389 Class B voting shares, representing approximately 32.6% of the outstanding voting shares after giving effect to such exercise or conversion, provided that at no time will the exercise of warrants or conversion of Preferred Shares result in CEEFC beneficially owning or controlling in excess of 19.9% of the voting shares of Transat. CEEFC intends to hold the Preferred Shares for investment purposes. Depending on market conditions and other factors, including Transat's business and financial condition, CEEFC may dispose of some or all of the securities of Transat that it owns. CEEFC and its affiliates do not intend to acquire additional equity securities of Transat except through the possible exercise of the warrants and conversion of the Preferred Shares. An early warning report will be filed by CEEFC in accordance with applicable securities laws and will be available on SEDAR+ at or may be obtained directly from CEEFC upon request from Mr. Bruno Lemay at 416-966-0185. Financial analysts: Juliette Gauthier Senior Director, Investor Relations and Corporate Finance [email protected] 514 987-1616, ext. 104019 SOURCE Transat A.T. Inc.
