Cookies policy

In order to provide you with the best online experience this website uses cookies.
By using our website, you agree to our use of cookies. Learn more.

Monday,  November 4, 2024   9:54 PM
Air Canada posts Q2 profit; summer operations “not at expected levels,” says CEO
Michael Rousseau, president & CEO, Air Canada. (File photos)

Air Canada shared its second quarter results on Friday (Aug. 11), posting a net profit of $838 million, or $2.34 per share, for the quarter ended June 30, compared with a net loss of $386 million, or $1.60 per share, a year earlier.

"Air Canada's second quarter results were driven by strong demand and show the effectiveness of our plan,” said Michael Rousseau, president and CEO of Air Canada, in a statement. “As a result of the hard work of our people, the appeal of our growing global network, as well as our leading brand and product offering, operating revenues in the quarter reached $5.4 billion, an increase of 36 per cent from a year ago.”

The airline’s operating income was $802 million, which is a year-over-year improvement of more than $1 billion, Rousseau said, noting that Air Canada carried more than 11 million customers in Q2, which is 23 per cent more than last year.

Profits have also benefited from a roughly 30 per cent drop in jet fuel prices.

Air Canada aircraft parked at Toronto Pearson airport. (Pax Global Media/file photo)

Still, despite having more resources than last summer, Air Canada’s operations in June and July “were not at expected levels,” the CEO said.

“We are increasing our efforts to protect the customer journey from disruption, regardless of the cause,” Rousseau said. “This includes using any influence we have, in such instances as pilot attrition at our principal regional partner or global supply chain issues, or working to mitigate the effects of situations beyond our control, such as disruptive storm activity in our key hubs and markets. We are confident that our efforts will generate positive outcomes.”

Last in on-time performance

Rousseau's comments come one day after aviation data firm Cirium revealed that Air Canada ranked last in on-time performance among the 10 largest airlines in North America.

The report, which surfaced Thursday (Aug. 10), claims Canada's biggest carrier landed just 51 per cent of its flights on time last month.

In comparison, WestJet, which placed seventh on the list, saw 62 per cent of its trips arrive on time (which is defined as within 15 minutes of scheduled arrival).

(Air Canada)

The two results paled in comparison to top U.S. performers, Alaska Airlines and Delta Air Lines, which ranked 82 per cent and 79 per cent, respectively.

The average on-time performance for airlines in North American, however, was just 66 per cent – the worst by far of any of the regions Cirium tracked, including Europe, Latin America and the Middle East and Africa.

International success & ACV

Despite low performance stats, Rousseau said he was pleased with Air Canada’s international growth, which has propelled nearly 70 per cent of the year-over-year increase in passenger revenues.

Air Canada Vacations (ACV) also continued to see high demand for leisure travel packages, and Aeroplan added more partners and grew its membership, the CEO said.

But cargo business, like others in the industry, “experienced lower demand and yields than expected,” he said.

Strong demand 

Looking ahead at booking patterns, Rousseau noted the strength in travel demand over the second half of 2023, which he says will give Air Canada confidence to increase the lower end of its adjusted EBITDA guidance range.

“We continue to focus intently on cost discipline and liquidity management,” he said. “We ended the quarter with more than $9.6 billion in cash, cash equivalents and investments. This will enable us to further invest in our business, deleverage our balance sheet and ensure our company maintains the resiliency and adaptability needed for long-term success and to navigate through evolving market conditions.”


Don't miss a single travel story: subscribe to PAX today!  Click here to follow PAX on Facebook.   

Indicator...