Air Canada reports record third quarter results, best in 77-year history

Air Canada reports record third quarter results, best in 77-year history

MONTREAL — Air Canada has reported the best quarterly results in its 77-year history.

The carrier recorded third quarter adjusted net income of $457 million compared to adjusted net income of $365 million in the third quarter of 2013, an improvement of $92 million.

Air Canada reported operating income of $526 million, an increase of $110 million from the same quarter in 2013.  The airline recorded net income of $323 million in the third quarter of 2014 compared to a net income of $299 million in the third quarter of 2013, an improvement of $24 million.

“I am extremely pleased to report Air Canada’s best financial performance of any quarter in the Corporation’s 77-year history, surpassing previous records for adjusted net income, operating income and EBITDAR,” said Calin Rovinescu, President and Chief Executive Officer.

“Operating margin was 13.8%, an increase of 1.8 percentage points over the previous year’s quarter, underscoring the effectiveness of our business transformation strategy. The recent tailwind provided by a reduction in fuel prices is a welcome development but we remain focused on further cost reductions to achieve sustainable profitability in this highly competitive industry environment. While foreign exchange rates and fuel prices have fluctuated since 2012, Air Canada remains on track to achieve the savings targeted when we announced our objective at our June 2013 Investors’ Day to achieve a 15% CASM reduction from our 2012 baseline costs.

“The ratification of a 10-year agreement with our pilots provides a strong foundation to support long term profitable growth. With this additional stability and competitiveness, we are able to accelerate our fleet initiatives and capital programs with the acquisition of an additional two Boeing 777-300ER aircraft. This will bring our Boeing 777 fleet to a total of 25 aircraft, all of which will be reconfigured to our new international cabin product standard now featured on the 787 Dreamliner aircraft entering our international fleet.

“Performance of our leisure carrier subsidiary has continued to exceed our expectations.  Just one year after its launch in July 2013, Air Canada rouge has served almost 2.5 million customers, including one million this past quarter, contributing to record system-wide load factors for the second consecutive quarter.”