Air Canada posted robust results for the third quarter, reporting CA$6.1 billion in operating revenue and a CA$1 billion operating income, despite a 4% drop in revenue from lower passenger numbers. Adjusted EBITDA reached CA$1.5 billion, with adjusted earnings per share at CA$2.57, outperforming market expectations.
The airline also saw an 8% rise in on-time performance year-over-year, thanks to an operational improvement programme. President and CEO Michael Rousseau acknowledged the dedication of Air Canada staff in safely transporting nearly 13 million passengers, including Team Canada athletes.
Despite a lower-than-expected 3% increase in operating capacity due to fleet constraints, Air Canada managed a 3% rise in operating expenses to CA$5.1 billion, driven mainly by capacity-related costs and offset partially by contract-related adjustments.
The company reported net income of CA$2 billion, bolstered by a CA$1.15 billion tax asset gain, with diluted earnings per share at CA$5.38. Adjusted net income stood at CA$969 million, with adjusted earnings per share at CA$2.57, down from CA$1.3 billion and CA$3.41, respectively, in the previous year.
Air Canada recorded CA$737 million in net cash from operations, an increase of CA$329 million, with free cash flow at CA$282 million, up by CA$147 million. The airline's debt-to-EBITDA leverage ratio slightly improved to 1.0 as of September 30, 2024.
