Air Canada has reported third-quarter 2019 EBITDA (earnings before interest, taxes, depreciation, amortization and impairment) of CA$1.472 billion compared to third-quarter 2018 EBITDA of CA$1.351 billion, an increase of CA$121 million or 9%. The airline reported third-quarter 2019 operating income of CA$956 million compared to third-quarter 2018 operating income of CA$923 million.
On a capacity reduction of 2.1%, third-quarter system passenger revenues of CA$5.164 billion increased CA$146 million or 2.9% from the same quarter in 2018. The increase in system passenger revenues was driven by a yield improvement of 4.8%, partly offset by a traffic decrease of 1.8%. System yield in the third quarter of 2019 improved due to the constrained capacity resulting from the grounding of the Boeing 737 MAX aircraft as well as a generally improved pricing environment, mainly in North America. The yield increases also included additional revenues from Aeroplan flight redemptions and other revenues subsequent to the Aeroplan acquisition on January 10, 2019.
Air Canada’s third-quarter EBITDA of CA$1.472 billion was 9% higher than the third quarter of 2018, and better than the increase of approximately 5% projected in Air Canada’s news release dated July 30, 2019. This better-than-expected EBITDA performance was primarily driven by a lower fuel price per liter than that Air Canada had previously assumed in its guidance.
Third-quarter 2019 net income amounted to CA$636 million compared to third-quarter 2018 net income of CA$702 million. The third quarter of 2019 included foreign exchange gains of CA$27 million while the third quarter of 2018 included foreign exchange gains of CA$145 million. Air Canada reported adjusted net income of CA$613 million in the third quarter of 2019 compared to adjusted net income of CA$580 million in the third quarter of 2018. (US$1.00 = CA$1.31 at time of publication.)
