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Wednesday,  April 17, 2024 6:33 PM 

Air Canada suspends financial guidance for 2019 after Boeing groundings

  • Air
  •   03-15-2019  10:57 am

Air Canada suspends financial guidance for 2019 after Boeing groundings

Following Transport Canada's safety notice closing Canadian airspace to Boeing 737 MAX aircraft, the Federal Aviation Administration's temporary grounding order and Boeing's decision to suspend MAX deliveries to airline customers, Air Canada has announce that it will suspend all financial guidance it provided in respect of the first quarter and full year 2019.

Air Canada is suspending all financial guidance it provided on February 15, 2019 and February 28, 2019 in respect of the 2019 financial year, citing the “current uncertainty.”

READ MORE: Boeing 737 MAX grounded: Air Canada, Sunwing & WestJet respond

The financial guidance provided for the years 2020 and 2021 with respect to annual EBITDA margin (earnings before interest, taxes, depreciation, amortization and impairment, as a percentage of operating revenue) and annual ROIC (return on invested capital) as well as the cumulative free cash flow over the 2019-2021 period remains in place.

In a release, the airline stated that it will continue to adapt a contingency plan to address the evolving situation and will provide updates as developments warrant.