- Operating revenues of $3.981 billion,
a nearly five-fold increase from the second
quarter of 2021
- Operating loss of $253
million, the narrowest quarterly loss since the pandemic
began
- Free cash flow* of $441
million, an increase of nearly $2.1
billion from the second quarter of 2021
- Unrestricted liquidity of over $10.5
billion at June 30, 2022
MONTREAL, Aug. 2, 2022
/CNW Telbec/ - Air Canada today reported its second quarter 2022
financial results.
"The past three months have been very challenging for our
company, our employees, and customers from an operational
perspective. The path to recovery from any serious event is
rarely straight and easy. I thank our employees for their
incredibly hard work, demonstrated professionalism and commitment
as we safely transported over 9.1 million customers in the quarter,
nearly 8 million more than the second quarter of 2021 or about 70%
of total customers carried in the full year 2021," said
Michael Rousseau, President and
Chief Executive Officer of Air Canada.
"The industry worldwide is facing unprecedented conditions as it
emerges from pandemic-related restrictions. The situation is
particularly challenging in Canada, where we have gone from a near
two-year shutdown of air travel to rebuilding our capacity back to
close to 80 per cent of 2019 levels in just a few months.
Despite meticulous planning and projecting, participants involved
in the air transport system are facing significant pressure in
restarting. We continue to work together to restore the
travel experience to expectations and are encouraged by recent
improvements."
"From a financial perspective, we are pleased with our results
as we generated $154 million of
EBITDA* in the quarter, a significant increase from a negative
quarterly EBITDA of $656 million a
year ago, and operating revenues neared $4
billion in the quarter, an improvement of about $3.1 billion from the second quarter of 2021.
Compared to pre-pandemic levels, 2022 second quarter advance ticket
sales reached 94 per cent of those in the same quarter of 2019. In
the second quarter, our operating capacity, measured by available
seat miles, was 73 per cent of the same quarter in 2019,
and despite the lower capacity, passenger revenues were 80 per cent
of those generated in the second quarter of 2019, driven by higher
yields," said Mr. Rousseau.
"We expected travel would rebound significantly once
restrictions were lifted and prepared accordingly. We entered
the peak summer travel period at close to 90 per cent of our
pre-pandemic staffing levels, while prudently planning to operate
approximately 80 per cent of our pre-pandemic schedule over that
period. In the second quarter of 2022, we delivered a load factor
of 80.5%, representing a significant improvement from the second
quarter of 2021 levels but still declined about four percentage
points from the second quarter of 2019. To further support
the industry's recovery efforts and mitigate the short-term impact
on customers and employees, we recently took additional steps to
flatten peaks and smooth the flow of traffic, by proactively
reducing our schedule over July and August."
"Finally, while many participants play a unique and essential
role in the air transport system, we recognize that our customers
experience these interconnected efforts as a single journey. We are
working closely with our service providers and governments to keep
addressing the issues aviation is facing in Canada and globally. We acknowledge the
inconveniences and disruptions some of our customers have faced,
and we deeply regret this. This is not business as usual for
us. We thank our customers for their understanding and the
loyalty they are showing to Air Canada in these unprecedented
times," concluded Mr. Rousseau.
Second Quarter 2022 Financial
Results
Air Canada reported the
following financial results for the second quarter of 2022:
- Operating capacity, measured by Available Seat Miles (ASMs)
increased about five times from the second quarter of 2021.
Capacity in the second quarter was 73 per cent of the second
quarter of 2019, in line with projections in Air Canada's first
quarter 2022 earnings release dated April
26, 2022.
- Passenger revenues of $3.441
billion increased about eight times from the second quarter
of 2021.
- Operating revenues of $3.981
billion increased almost five times from the second quarter
of 2021.
- Operating expenses of $4.234
billion increased $2.264
billion from the second quarter of 2021.
- Cost per available seat mile (CASM) decreased to 20.8 cents from the second quarter 2021 CASM of
49.3 cents.
- Adjusted cost per available seat mile (Adjusted CASM)* of
13.1 cents compared to second quarter
2021 adjusted CASM of 41.5
cents.
- Operating loss of $253 million,
an improvement when compared to an operating loss of $1.133 billion in the second quarter of
2021.
- EBITDA* (excluding special items) or earnings before interest,
taxes, depreciation, and amortization of $154 million, better than the negative EBITDA of
$656 million in the second quarter of
2021.
- Net loss of $386 million or
$1.60 per diluted share compared to a
net loss of $1.165 billion or
$3.31 per diluted share in the second
quarter of 2021.
- Cash from operations of $1.077
billion compared to cash used in operations of $1.377 billion in the second quarter of 2021.
This improvement of $2.454 billion
was driven by better operating results and strong advance ticket
sales in the second quarter of 2022, and considers the refund of
eligible non-refundable tickets, which amounted to $997 million in the second quarter of 2021.
* EBITDA (excluding special items), EBITDA
margin, adjusted pre-tax income (loss), free cash flow,
net debt, and adjusted CASM (discussed in this news release)
are non-GAAP financial measures, non-GAAP ratios, or
supplemental financial measures. Such measures are not
recognized measures for financial statement presentation under
GAAP, do not have standardized meanings, may not be comparable to
similar measures presented by other entities and should not be
considered a substitute for or superior to GAAP results. Refer to
the "Non-GAAP Financial Measures" section of this news release for
descriptions of Air Canada non-GAAP financial measures, non-GAAP
ratios, and supplemental financial measures, and for a
reconciliation of Air Canada non-GAAP measures used in this news
release to the most comparable GAAP financial measure.
Second Quarter
2022 Overview
Easing of Travel Restrictions
During the second quarter of 2022, there was a further easing of
travel restrictions by the Government of Canada. These changes included:
- Since April 1, 2022, fully
vaccinated travellers are no longer required to provide a negative
pre-entry COVID-19 test result.
- Randomized testing for fully vaccinated travellers was
temporarily suspended as of June 11,
2022, and resumed on July 19,
2022 (including for unvaccinated and for randomly selected
fully vaccinated travellers) though it is now performed
offsite.
- Since June 20, 2022, passengers
are no longer required to present a proof of vaccination for
boarding an aircraft in Canada.
The requirements for passengers entering Canada remain unchanged.
Foreign nationals must qualify as fully vaccinated to enter
Canada unless they meet an
exemption set out in the Orders made under the Quarantine
Act. Generally, unvaccinated or partially vaccinated travellers
allowed to enter Canada remain
subject to the federal requirement to quarantine and take a
COVID-19 test prior to arrival, at arrival, and on day eight
after arrival.
Route Network and Schedule
In late June 2022, in response to the unprecedented
challenges faced by the air transportation system, Air Canada
decided to proactively cancel about 8% of its scheduled flights in
July and August 2022. This reduction
represents about 154 fewer flights per day, on average,
primarily on domestic and U.S. transborder routes to
and from Toronto and Montreal
(at peak times), or a total of about 378 million ASMs.
Fleet
In July 2022, Air Canada finalized
an agreement for the purchase of two new Boeing 777 freighter
aircraft with deliveries expected in 2024.
Outlook
For the third quarter of 2022, Air Canada plans to increase its
ASM capacity by about 131 per cent from the same quarter
in 2021 (or approximately 79 per cent of third
quarter 2019 ASM capacity).
Air Canada is now providing the
following guidance for the full year 2022:
- Air Canada plans to increase
its full year 2022 ASM capacity by about 150 per cent from 2021 ASM
levels (or about 74 per cent of 2019 ASM levels). Air Canada will continue to adjust capacity and
take other measures as required, including to account for passenger
demand, public health guidelines, and travel restrictions globally,
as well as other factors, such as inflation and other cost
pressures.
- For 2022, Air Canada expects Adjusted CASM to be about 15 to 17
per cent above 2019 levels. The variance to prior guidance is
mainly due to an increase in the number of customers carried, which
translates into higher passenger service and distribution costs. To
a lesser extent, it is also attributable to an increase in wages,
salaries and benefits.
- For 2022, Air Canada maintains its expectation of an annual
EBITDA margin* of about 8 to 11 per cent.
Major Assumptions
Assumptions were made by Air Canada in preparing and making
forward-looking statements. Among these, Air Canada assumes
moderate Canadian GDP growth for 2022. Air Canada now assumes that the Canadian dollar
will trade, on average, at C$1.28 per
U.S. dollar for the full year 2022 and that the price of jet fuel
will average C$1.27 per litre for the
full year 2022.
Non-GAAP Financial
Measures
Below is a description of certain non-GAAP financial measures
used by Air Canada to provide readers with additional information
on its financial and operating performance. Such measures are not
recognized measures for financial statement presentation under
GAAP, do not have standardized meanings, may not be comparable to
similar measures presented by other entities and should not be
considered a substitute for, or superior to, GAAP results. Refer to
the discussion below for descriptions of non-GAAP financial
measures and to the tables accompanying
this news release for reconciliations of the non-GAAP
financial measures, used in this news release to the most
comparable GAAP financial measures.
EBITDA
EBITDA (earnings before interest, taxes, depreciation and
amortization) is commonly used in the airline industry and is used
by Air Canada as a means to view operating results before interest,
taxes, depreciation and amortization as these costs can vary
significantly among airlines due to differences in the way airlines
finance their aircraft and other assets. Air Canada excludes special items from EBITDA as
these items may distort the analysis of certain business trends and
render comparative analysis across periods or to other airlines
less meaningful.
EBITDA Margin
EBITDA margin (EBITDA as a percentage of operating revenue) is
commonly used in the airline industry and is used by Air Canada as
a means to measure the operating margin before interest, taxes,
depreciation and amortization as these costs can vary significantly
among airlines due to differences in the way airlines finance their
aircraft and other assets.
EBITDA and EBITDA margin are reconciled to GAAP operating income
(or loss) as follows:
|
Second
Quarter
|
(Canadian dollars in
millions, except where indicated)
|
2022
|
2021
|
Change
|
Operating loss –
GAAP
|
$
|
(253)
|
$
|
(1,133)
|
$
|
880
|
Add
back:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
407
|
|
404
|
|
3
|
EBITDA (including
special items)
|
$
|
154
|
$
|
(729)
|
$
|
883
|
Remove:
|
|
|
|
|
|
|
Special
items
|
|
-
|
|
73
|
|
(73)
|
EBITDA (excluding
special items)
|
$
|
154
|
$
|
(656)
|
$
|
810
|
Operating margin
(%)
|
|
(6)
|
|
(135)
|
|
129
pp
|
EBITDA margin
(%)
|
|
4
|
|
(78)
|
|
82 pp
|
Adjusted Cost per Available Seat
Mile (CASM)
Air Canada uses adjusted CASM
to assess the operating and cost performance of its ongoing airline
business without the effects of aircraft fuel expense, the cost of
ground packages at Air Canada Vacations, freighter costs, and
special items as these items may distort the analysis of certain
business trends and render comparative analysis across periods or
to other airlines less meaningful.
In calculating adjusted CASM, aircraft fuel expense is excluded
from operating expense results as it fluctuates widely depending on
many factors, including international market conditions,
geopolitical events, jet fuel refining costs and Canada/U.S. currency exchange rates. Air
Canada also incurs expenses
related to ground packages at Air Canada Vacations which some
airlines, without comparable tour operator businesses, may not
incur. In addition, these costs do not generate ASMs and therefore
excluding these costs from operating expense results provides for a
more meaningful comparison across periods when such costs may
vary.
Air Canada also incurs expenses
related to the operation of freighter aircraft which some airlines,
without comparable cargo businesses, may not incur. Air
Canada introduced one Boeing 767
dedicated freighter to its fleet in December
2021 and added a second Boeing 767 freighter in April 2022. In the second quarter of 2022, Air
Canada took delivery of two new Boeing 767 freighter aircraft,
which are expected to enter service in 2023. Air Canada expects to have a fleet of seven Boeing
767 dedicated freighters by the end of 2023. Prior to 2021, Air
Canada did not incur any costs related to the operation of
dedicated freighter aircraft. These costs do not generate ASMs and
therefore excluding these costs from operating expense results
provides for a more meaningful comparison across periods when such
costs may vary.
Excluding aircraft fuel expense, the cost of ground packages at
Air Canada Vacations, dedicated freighter expenses and special
items from operating expenses generally allows for a more
meaningful analysis of Air Canada's operating expense performance
and a more meaningful comparison to that of other airlines.
Adjusted CASM is reconciled to GAAP operating expense as
follows:
(Canadian dollars in
millions, except where indicated)
|
Second
Quarter
|
2022
|
2021
|
Change
|
Operating expense –
GAAP
|
$
|
4,234
|
$
|
1,970
|
$
|
2,264
|
Adjusted
for:
|
|
|
|
|
|
|
Aircraft
fuel
|
|
(1,450)
|
|
(239)
|
|
(1,211)
|
Ground package
costs
|
|
(102)
|
|
(1)
|
|
(101)
|
Special
items
|
|
-
|
|
(73)
|
|
73
|
Freighter
costs
|
|
(22)
|
|
-
|
|
(22)
|
Operating expense,
adjusted for the above-noted items
|
$
|
2,660
|
$
|
1,657
|
$
|
1,003
|
ASMs
(millions)
|
|
20,331
|
|
4,000
|
|
408.3 %
|
Adjusted CASM
(cents)
|
¢
|
13.09
|
¢
|
41.45
|
¢
|
(28.36)
|
Adjusted Pre-tax Income
(Loss)
Adjusted pre-tax income (or loss) is used by Air Canada to
assess the overall pre-tax financial performance of its business
without the effects of foreign exchange gains or losses, net
interest relating to employee benefits, gains or losses on
financial instruments recorded at fair value, gains or losses on
sale and leaseback of assets, gains or losses on disposal of
assets, gains or losses on debt settlements and modifications, and
special items as these items may distort the analysis of certain
business trends and render comparative analysis across periods or
to other airlines less meaningful.
Adjusted pre-tax income (or loss) is reconciled to GAAP income
(or loss) before income taxes as follows:
(Canadian dollars in
millions)
|
Second
Quarter
|
2022
|
2021
|
$
Change
|
Loss before income
taxes – GAAP
|
$
|
(352)
|
$
|
(1,298)
|
$
|
946
|
Adjusted
for:
|
|
|
|
|
|
|
Special
items
|
|
-
|
|
73
|
|
(73)
|
Foreign exchange
loss
|
|
196
|
|
5
|
|
191
|
Net interest relating
to employee benefits
|
|
(4)
|
|
5
|
|
(9)
|
(Gain) loss on
financial instruments recorded at fair value
|
|
(287)
|
|
5
|
|
(292)
|
Adjusted pre-tax
loss
|
$
|
(447)
|
$
|
(1,210)
|
$
|
763
|
Free Cash Flow
Air Canada uses free cash flow
as an indicator of the financial strength and performance of its
business, indicating the amount of cash Air Canada can generate
from operations and after capital expenditures. Free cash flow is
calculated as net cash flows from operating activities minus
additions to property, equipment, and intangible assets, and is net
of proceeds from sale and leaseback transactions.
The table below provides the calculation of free cash flow for
Air Canada for the periods indicated.
|
Second
Quarter
|
(Canadian dollars in
millions)
|
2022
|
2021
|
$
Change
|
Net cash flows from
(used in) operating activities
|
$
|
1,077
|
$
|
(1,377)
|
$
|
2,454
|
Additions to property,
equipment, and intangible assets, net of proceeds from sale and
leaseback transactions
|
|
(636)
|
|
(261)
|
|
(375)
|
Free cash
flow
|
$
|
441
|
$
|
(1,638)
|
$
|
2,079
|
Additional Financial
Measures
Net Debt
Net debt is a capital management measure and a key component of
the capital managed by Air Canada and provides management with a
measure of its net indebtedness.
The table below reflects Air Canada's net debt balances as at
June 30, 2022, and as at December 31, 2021.
(Canadian dollars in
millions)
|
June 30,
2022
|
December 31,
2021
|
$
Change
|
Total long-term debt
and lease liabilities
|
$
|
15,400
|
$
|
15,511
|
$
|
(111)
|
Current portion of
long-term debt and lease liabilities
|
|
1,164
|
|
1,012
|
|
152
|
Total long-term debt
and lease liabilities (including current portion)
|
|
16,564
|
|
16,523
|
|
41
|
Less cash, cash
equivalents and short and long-term investments
|
|
(9,536)
|
|
(9,403)
|
|
(133)
|
Net debt
|
$
|
7,028
|
$
|
7,120
|
$
|
(92)
|
For further information on Air Canada's public disclosure file,
including Air Canada's 2021 Annual Information Form dated
February 25, 2022, consult SEDAR at
www.sedar.com.
Second Quarter 2022 Conference
Call
Air Canada will host its
quarterly analysts' call today, Tuesday,
August 2, 2022, at 8:00 a.m.
ET. Michael Rousseau,
President and Chief Executive Officer, Amos
Kazzaz, Executive Vice President and Chief Financial
Officer, Lucie Guillemette,
Executive Vice President and Chief Commercial Officer, and
Craig Landry, Executive Vice
President and Chief Operations Officer, will be available for
analysts' questions. Immediately following the analysts' Q&A
session, Mr. Kazzaz and Pierre
Houle, Vice President and Treasurer, will be available to
answer questions from term loan B lenders and holders of Air Canada
bonds.
Media and the public may access this call on a listen-in basis.
Details are as follows:
Live audio
webcast:
|
https://edge.media-server.com/mmc/p/2e6n9kqw
|
|
|
By telephone:
|
416-340-2217 or
1-800-898-3989 (toll-free), passcode 6969160#
|
|
|
|
Please allow 10 minutes
to be connected to the conference call.
|
CAUTION REGARDING
FORWARD-LOOKING INFORMATION
This news release includes forward-looking statements
within the meaning of applicable securities laws. Forward-looking
statements relate to analyses and other information that are based
on forecasts of future results and estimates of amounts not yet
determinable. These statements may involve, but are not limited to,
comments relating to guidance, strategies, expectations, planned
operations or future actions. Forward-looking statements are
identified using terms and phrases such as "preliminary",
"anticipate", "believe", "could", "estimate", "expect", "intend",
"may", "plan", "predict", "project", "will", "would", and similar
terms and phrases, including references to assumptions.
Forward-looking statements, by their nature, are based on
assumptions including those described in this news release and the
documents incorporated by reference herein and are subject to
important risks and uncertainties. Forward-looking
statements cannot be relied upon due to, among other things,
changing external events and general uncertainties of the business
of Air Canada. Actual results may differ materially from results
indicated in forward-looking statements due to a number of factors,
including those discussed below.
Since March 2020, Air Canada
and the rest of the global airline industry have faced
significantly lower traffic than in 2019, and a corresponding
decline in revenue and cash flows, as a result of the COVID-19
pandemic and the travel restrictions imposed in many countries
around the world, including in Canada. Conditions have improved and travel
restrictions have been lifted in many countries, but the
wide-ranging impact of the COVID-19 pandemic and certain other
factors have impeded Air Canada's and the global airline industry's
restart efforts. It has also affected the ability of some of its
participants, on which Air Canada's operations are dependent, to
support the surge in traffic. This has led to flight delays and
cancellations, and other operational disruptions and challenges.
Air Canada cannot predict the
timing for when such challenges may be overcome or the timing and
extent of the return to pre-pandemic traffic levels. The return of
business travel to pre-pandemic levels may be challenged by the
evolving nature of business models and remote-work practices
adopted during the COVID-19 pandemic, such as the use of
videoconferencing and other remote-work technologies, as well as by
interest in more sustainable practices. Air Canada is
actively monitoring key indicators relevant to its rebuilding plans
and will adjust as required. This will include the evolving impact
of the pandemic, the timing and extent of recovery in the
international and business travel segments, the ability of industry
participants to overcome challenges in restarting the industry and
meeting the surge in traffic, economic and other factors, none of
which can be predicted with certainty.
Other factors that may cause results to differ materially
from results indicated in forward-looking statements include
economic and geopolitical conditions such as the military conflict
between Russia and Ukraine, Air Canada's ability to successfully
achieve or sustain positive net profitability, industry and market
conditions and the demand environment, Air Canada's ability to pay
its indebtedness and maintain or increase liquidity, competition,
Air Canada's dependence on technology, cybersecurity risks, energy
prices, Air Canada's ability to successfully implement appropriate
strategic and other important initiatives (including Air Canada's
ability to manage operating costs), other epidemic diseases,
terrorist acts, war, Air Canada's dependence on key suppliers
(including government agencies and other stakeholders supporting
airport and airline operations), Air Canada's ability to
successfully operate its loyalty program, interruptions of service,
Air Canada's ability to attract and retain required personnel, the
availability and onboarding of Air Canada's workforce, casualty
losses, changes in laws, regulatory developments or proceedings,
climate change and environmental factors (including weather systems
and other natural phenomena and factors arising from anthropogenic
sources), Air Canada's dependence on regional and other carriers,
Air Canada's ability to preserve and grow its brand, employee and
labour relations and costs, Air Canada's dependence on Star
Alliance® and joint ventures, pending and future litigation and
actions by third parties, currency exchange, limitations due to
restrictive covenants, insurance issues and costs, pension plans,
as well as the factors identified in Air Canada's public disclosure
file available at www.sedar.com and, in
particular, those identified in section 18 "Risk Factors" in Air
Canada's 2021 MD&A and section 14 "Risk Factors" of Air
Canada's Second Quarter 2022 MD&A. The forward-looking
statements contained or incorporated by reference in this news
release represent Air Canada's expectations as of the date of this
news release (or as of the date they are otherwise stated to be
made) and are subject to change after such date. However, Air
Canada disclaims any intention or obligation to update or revise
any forward-looking statements whether because of new information,
future events or otherwise, except as required under applicable
securities regulations.
About Air Canada
Air Canada is Canada's largest airline, the country's flag
carrier and a founding member of Star
Alliance, the world's most comprehensive air transportation
network celebrating its 25thanniversary in 2022. Air
Canada provides scheduled
passenger service directly to 51 airports in Canada, 51 in the
United States and 86 internationally. It is the only
international network carrier in North
America to receive a Four-Star ranking from Skytrax, which
in 2021 gave Air Canada awards for the Best Airline Staff in
North America, Best Airline Staff
in Canada, Best Business Class
Lounge in North America, and an
excellence award for managing COVID-19. Through its leading
travel loyalty Aeroplan program, Air Canada offers the ability to
earn or redeem points on the world's largest airline partner
network of 45 airlines, plus through an extensive range of
merchandise, hotel and car rental rewards. Its freight division,
Air Canada Cargo, provides air freight lift and connectivity to
hundreds of destinations across six continents using Air Canada's
passenger flights and cargo-only flights with its fleet of Boeing
767-300 freighters. Air Canada has
committed to a net zero emissions goal from all global operations
by 2050.
Internet: aircanada.com/media
Sign up for Air Canada news: aircanada.com
Media Resources:
Photos
Videos
B-Roll
Articles
Selected Financial Metrics and
Statistics
The financial and operating highlights for Air Canada for the
periods indicated are as follows:
(Canadian dollars in
millions, except per share data or where indicated)
|
Second
Quarter
|
Financial
Performance Metrics
|
2022
|
2021
|
$
Change
|
Operating
revenues
|
3,981
|
837
|
3,144
|
Operating
loss
|
(253)
|
(1,133)
|
880
|
Loss before income
taxes
|
(352)
|
(1,298)
|
946
|
Net loss
|
(386)
|
(1,165)
|
779
|
Adjusted pre-tax loss
(1)
|
(447)
|
(1,210)
|
763
|
Operating margin
(%)
|
(6)
|
(135)
|
129
pp(8)
|
EBITDA (excluding
special items) (1)
|
154
|
(656)
|
810
|
EBITDA margin
(1) (%)
|
4
|
(78)
|
82 pp
|
Unrestricted liquidity
(2)
|
10,508
|
9,775
|
733
|
Net cash flows from
(used in) operating activities
|
1,077
|
(1,377)
|
2,454
|
Free cash flow
(1)
|
441
|
(1,638)
|
2,079
|
Net debt
(1)
|
7,028
|
7,085
|
(57)
|
Diluted loss per
share
|
(1.60)
|
(3.31)
|
1.71
|
Operating Statistics
(3)
|
2022
|
2021
|
%
Change
|
Revenue passenger miles
("RPMs") (millions)
|
16,371
|
1,687
|
870.2
|
Available seat miles
("ASMs") (millions)
|
20,331
|
4,000
|
408.3
|
Passenger load factor
%
|
80.5 %
|
42.2 %
|
38.3 pp
|
Passenger revenue per
RPM ("Yield") (cents)
|
21.0
|
25.3
|
(16.8)
|
Passenger revenue per
ASM ("PRASM") (cents)
|
16.9
|
10.7
|
58.8
|
Operating revenue per
ASM (cents)
|
19.6
|
20.9
|
(6.5)
|
Operating expense per
ASM ("CASM") (cents)
|
20.8
|
49.3
|
(57.7)
|
Adjusted CASM
(cents)(1)
|
13.1
|
41.5
|
(68.4)
|
Average number of
full-time-equivalent ("FTE") employees
(thousands)(4)
|
29.5
|
16.5
|
78.7
|
Aircraft in operating
fleet at period-end (5)
|
342
|
336
|
1.8
|
Seats dispatched
(thousands)
|
11,744
|
2,668
|
340.2
|
Aircraft frequencies
(thousands)
|
86.0
|
24.3
|
253.8
|
Average stage length
(miles) (6)
|
1,731
|
1,505
|
15.1
|
Fuel cost per litre
(cents)
|
147.3
|
68.3
|
115.7
|
Fuel litres
(thousands)
|
983,688
|
349,690
|
181.3
|
Revenue passengers
carried (thousands) (7)
|
9,145
|
1,165
|
685.0
|
(1)
|
Adjusted pre-tax
income (loss), EBITDA (excluding special items) (earnings before
interest, taxes, depreciation, and amortization), EBITDA margin,
free cash flow, net debt and adjusted CASM are non-GAAP financial
measures, non-GAAP ratios or supplemental financial measures. Such
measures are not recognized measures for financial statement
presentation under GAAP, do not have standardized meanings, may not
be comparable to similar measures presented by other entities and
should not be considered a substitute for or superior to GAAP
results. Refer to section "Non-GAAP Financial Measures" of this
news release for descriptions of non-GAAP financial measures and to
the tables accompanying this news release for a quantitative
reconciliation of the non-GAAP financial measures, used in this
news release to the most comparable GAAP measure.
|
(2)
|
Unrestricted
liquidity refers to the sum of cash, cash equivalents, short and
long-term investments, and the amounts available under Air Canada's
credit facilities. Unrestricted liquidity, as at June 30, 2022,
consisted of $9,536 million in cash, cash equivalents, short and
long-term investments and $972 million available under undrawn
credit facilities. As at June 30, 2021, unrestricted liquidity
consisted of $5,661 million in cash, cash equivalents, short and
long-term investments and $3,975 million available under undrawn
credit facilities with the Government of Canada and $139 million
available to be drawn under the Government of Canada refunds credit
facility.
|
(3)
|
Except for the
reference to average number of FTE employees, operating statistics
in this table include third party carriers operating under capacity
purchase agreements with Air Canada.
|
(4)
|
Reflects FTE
employees at Air Canada and its subsidiaries. Excludes FTE
employees at third party carriers operating under capacity purchase
agreements with Air Canada. As of June 30, 2022, there were 30,204
employees based in Canada.
|
(5)
|
The number of
aircraft in Air Canada's operating fleet at June 30, 2022 and at
June 30, 2021 include aircraft that were grounded due to the impact
of the COVID-19 pandemic.
|
(6)
|
Average stage length is
calculated by dividing the total number of available seat miles by
the total number of seats dispatched.
|
(7)
|
Revenue passengers
are counted on a flight number basis (rather than by
journey/itinerary or by leg) which is consistent with the IATA
definition of revenue passengers carried.
|
(8)
|
"pp" denotes
percentage points and refers to a measure of the arithmetic
difference between two percentages.
|
SOURCE Air Canada