MONTRÉAL — Air Canada is reporting record third quarter adjusted net income of $734 million compared to adjusted net income of $457 million in the third quarter of 2014, an improvement of $277 million or approximately 61%.
EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rent) amounted to $1,076 million compared to EBITDAR of $749 million in the same quarter in 2014, an increase of $327 million or approximately 44% year-over-year.
On a GAAP basis, Air Canada reported record third quarter operating income of $815 million compared to operating income of $526 million, an improvement of $289 million or approximately 55% from the third quarter of 2014. An operating margin of 20.3% in the third quarter of 2015 reflected an improvement of 6.5 percentage points from the same quarter in 2014.
According to Calin Rovinescu, President and Chief Executive Officer of Air Canada, “we will continue to direct the majority of our operating cash flow to finance the renewal of our fleet with more fuel efficient aircraft and to reduce net debt levels, two drivers which we firmly believe will continue to increase long-term shareholder value.
“The transformative changes we have made in recent years provide us with the cost structure, fleet and flexibility to respond not only to competitive market conditions, but also to fluctuations in the Canadian dollar and economic downturns. Moreover, our plan is not based on fuel prices staying at the current levels. Our capacity additions for the year, largely in international markets, remain consistent with our plan that had been established in a higher fuel price environment and continue to be important contributors to our increased profits.
“In addition, we have increased investments in training and support for our employees, contributing to higher employee engagement levels and improved customer service scores, such as the Ipsos Reid Business Traveller Survey which named Air Canada ‘Canada’s Favourite Airline for Business Travel’. Air Canada was preferred by 86% of Canadian frequent business travellers surveyed in 2015, an improvement of 17 percentage points over the past seven years.”
Yesterday Air Canada rouge took delivery of its first Airbus 321, direct from the Airbus completion facility in Hamburg. The aircraft is the first of five brand new A321s that will join the Air Canada rouge fleet. Air Canada Leisure Group’s President and CEO, Michael Friisdahl, hosted an industry event at the Air Canada Hangar at Toronto Pearson International Airport last night in celebration of the new aircraft. Guests were able to tour the new aircraft, offering Premium rouge and economy class seating.
