Air Canada Provides Second Quarter 2024 Preliminary Results and Updates Full Year 2024 Guidance
Q2 2024 preliminary results
- Operating revenues of about
$5.5 billion , on 6.5% increased operated capacity year-over-year, as compared to about$5.4 billion in Q2 2023 - Operating income of
$466 million , with an operating margin of 8.4%, as compared to$802 million in Q2 2023 - Adjusted EBITDA* of
$914 million , as compared to about$1.2 billion in Q2 2023
All 2024 second quarter figures reported in this news release are preliminary estimates.
2024 outlook
Metric |
Prior FY 2024 Guidance |
Updated FY 2024 Guidance |
ASM capacity |
6 to 8% increase versus 2023 |
5.5 to 6.5% increase versus |
Adjusted CASM* |
2.5 to 4.5% increase versus |
2.5 to 3.5% increase versus |
Adjusted EBITDA* |
|
|
|
*Adjusted CASM, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and adjusted EBITDA margin are referred to in this news release. Such measures are non-GAAP financial measures, or non-GAAP ratios, 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 |
The updated 2024 adjusted EBITDA guidance range is largely driven by the lower yield environment, lower-than-expected load factors for the second half of the year and competitive pressures in international markets. It also reflects our assumptions including those relating to the price of jet fuel and a weakened Canadian dollar against the US dollar.
The updated 2024 capacity guidance range accounts for sustained supply chain pressures, evolving market conditions and ongoing geopolitical issues. The updated 2024 adjusted CASM range includes the impact of the revised ASM capacity guidance range.
Major assumptions
The preliminary estimates and outlook provided in this news release constitute forward-looking statements within the meaning of applicable securities laws, are based on a number of assumptions and are subject to a number of risks and uncertainties, including those outlined in this release. Please see section below entitled "Caution Regarding Forward-Looking Information".
Second quarter 2024 results
Air Canada will be releasing its second quarter 2024 results on
Media and the public may access this call on a listen-only basis. Details are as follows:
Date: |
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Time: |
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Webcast: |
https://edge.media-server.com/mmc/p/gkyhttmt
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By telephone: |
647-932-3411 or 1-800-715-9871 (toll-free), Conference |
Replay: |
An online replay will be available shortly after the conclusion of the call at |
Non-GAAP financial measures
Below is a description of certain non-GAAP financial measures and ratios used by
Adjusted CASM
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
Adjusted EBITDA
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) is commonly used in the airline industry and is used by
Adjusted EBITDA margin (adjusted EBITDA as a percentage of operating revenues) is commonly used in the airline industry and is used by
Adjusted EBITDA and adjusted EBITDA margin are reconciled to GAAP operating income (loss) as follows:
|
Second Quarter |
|||||
(Canadian dollars in millions, except where indicated) |
2024 (preliminary) |
2023 |
Change |
|||
Operating income – GAAP |
$ |
466 |
$ |
802 |
$ |
(336) |
Add back: |
|
|
|
|
|
|
Depreciation and amortization |
|
448 |
|
418 |
|
30 |
Adjusted EBITDA |
$ |
914 |
$ |
1,220 |
$ |
(306) |
Operating revenues |
$ |
5,519 |
$ |
5,427 |
$ |
92 |
Operating margin (%) |
|
8.4 |
|
14.8 |
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(6.4) pp |
Adjusted EBITDA margin (%) |
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16.6 |
|
22.5 |
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(5.9) pp |
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. Forward-looking statements cannot be relied upon due to, among other things, changing external events and general uncertainties of the business of
Factors that may cause results to differ materially from results indicated in forward-looking statements include economic conditions as well as geopolitical conditions such as the military conflicts in the
The forward-looking statements contained or incorporated by reference in this news release represent
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