Air Canada has reported second-quarter operating revenues exceeding CA$5.5 billion and an adjusted EBITDA of CA$914 million. Demand remained strong, with load factors surpassing historical averages, and the airline improved its on-time performance by 10 percentage points compared to the previous year, despite increased flight activity. The airline transported 11.6 million customers during the quarter
Capacity increased by 6.5% compared to the second quarter of 2023 and adjusted unit costs rose by 1.7%, demonstrating effective cost management. Air Canada expanded its network with new services to Singapore, Stockholm and India and secured eight additional Boeing 737-8 aircraft to enter service next year.
Operating revenues increased by 2% to CA$5.519 billion, while operating expenses rose by 9% to CA$5.053 billion. Operating income decreased to CA$466 million, with an operating margin of 8.4%. Adjusted EBITDA declined to CA$914 million, and net income fell to CA$410 million or CA$1.04 per diluted share. Adjusted net income was CA$369 million or CA$0.98 per diluted share. Adjusted CASM increased by 1.7% due to higher labour, maintenance, and IT expenses. Net cash flows from operating activities were CA$924 million and free cash flow was CA$451 million. The net debt-to-adjusted EBITDA ratio improved to 1.0.
For the third quarter of 2024, Air Canada plans to increase its ASM capacity by 4% to 4.5% compared to the same period in 2023 and has confirmed its full-year 2024 guidance. (US$1.00 = CA$ 1.37 at time of publication).
