Air Canada has released its third-quarter 2021 financial results, which reveal operating revenues of CA$2.103 billion, representing almost three times the operating revenues of CA$757 million in the third quarter of 2020. Negative EBITDA (earnings before interest, taxes, depreciation, and amortization), excluding special items, was CA$67 million compared to negative EBITDA (excluding special items) of CA$554 million in the same quarter of 2020. Operating loss was CA$364 million, compared to an operating loss of CA$785 million in the third quarter of CA2020. Net cash flow was CA$153 million, approximately CA$520 million higher than the midpoint of the net cash burn guidance provided for the quarter. Record cargo revenues surpassed the billion-dollar mark year-to-date and unrestricted liquidity stood at CA$14.4 billion at September 30, 2021.
“We are encouraged by the favourable revenue and traffic trends in the third quarter, with strong increases in key passenger geographic segments, a record cargo performance and significant improvements in both Air Canada Vacations and Aeroplan,” said Michael Rousseau, President and Chief Executive Officer of Air Canada. A summary of third-quarter finances is as follows: Air Canada recorded a net loss of CA$640 million or CA$1.79 per diluted share in the third quarter of 2021 compared to a net loss of CA$685 million or $2.31 per diluted share in the third quarter of 2020. The net loss in the third quarter of 2021 included a foreign exchange loss of CA$136 million, as compared to a foreign exchange gain of CA$88 million recorded during the third quarter of 2020. When compared to the third quarter of 2020, EBITDA improved CA$487 million to negative EBITDA, excluding special items, of CA$67 million in the third quarter of 2021. The last two months of the third quarter of 2021 each generated positive EBITDA. In the third quarter of 2021, net cash generation of CA$153 million was better than management's expectation of a net cash burn of between CA$280 and CA$460 million, as discussed in Air Canada's July 23, 2021 news release.
Over the third quarter, Air Canada saw the benefit of strong advance ticket sales and a significant increase in passengers carried versus both the second quarter of 2021 and the third quarter of 2020. This, along with its strong liquidity position, gives Air Canada added confidence that it is well-positioned to emerge from the pandemic, and to continue building back its network and investing in the future. As at September 30, 2021, Air Canada's unrestricted liquidity was approximately CA$14.4 billion which consisted of approximately CA$9.5 billion in cash, cash equivalents, short- and long-term investments and about CA$4.9 billion available in undrawn funds from credit facilities.
