Air Canada reports record full year 2015 results

Air Canada reported record full year adjusted net income of $1.222 billion, compared to record adjusted net income of $531 million in 2014, an improvement of $691 million. 

On a GAAP basis, Air Canada reported operating income of $1.496 billion in 2015, an increase of $681 million or 83.6 per cent from 2014. The airline reported net income of $308 million in 2015, compared to net income of $105 million in 2014. 

"In 2015, we achieved the best financial results in Air Canada's history for a second year in a row, by a substantial margin, underscoring the effectiveness of our business strategy and enhanced competitive position. Our results reflect the significant progress being achieved through our various value-enhancing initiatives, including fleet modernization, international expansion, the roll-out of rouge and our network diversification," Calin Rovinescu, president and CEO, stated in a release. 

"As I have said previously, our plan is not dependent on fuel prices staying at current levels, and the transformative changes we've made in recent years provide us with a cost structure, fleet and flexibility to respond, as we did in 2015, to competitive market conditions, fluctuations in the Canadian dollar and to economic weakness. Moreover, we have a proven track record of proactively managing and allocating capacity to meet demand, as we did last year upon seeing signs of weakness in Western Canada; and we will continue to adjust capacity to maximize profitability,” Rovinescu stated. 

Rovinescu reconfirmed the airline's three key financial targets established last June: an annual margin of 15 to 18 per cent from 2015 to 2018; a year-over-year return on invested capital of 13 to 16 per cent from 2015 to 2018; and reducing leverage ratio to 2.2 or less by 2018. In addition, he said "we remain committed to reducing our unit costs and are on track to realizing CASM savings of 21 per cent, excluding the impact of foreign exchange and fuel prices, by the end of 2018 when compared to 2012.

"We've transformed and created a solid financial framework for our airline. We have remarkable employees who are rising to the challenge and I would like to thank and acknowledge their dedication and efforts to deliver exceptional customer service and an excellent financial performance in 2015."

Key highlights of the report include: 

• Record adjusted net income of $1.222 billion or $4.18 per diluted share in 2015 versus record 2014 adjusted net income of $531 million or $1.81 per diluted share (an increase of $691 million, 130.1 per cent or $2.37 per diluted share versus the 2014 record). Record operating income of $1.496 billion in 2015, an increase of $681 million or 83.6 per cent from the 2014 record.
• Record margin of 18.3 per cent, exceeding 2014 by 5.7 percentage points and surpassing the 2015 Investor Day target.
• Return on Invested Capital of 18.3 per cent in 2015, exceeding 2014 ROIC by 6.2 percentage points and surpassing the 2015 Investor Day target.

For more information, visit aircanada.com.