- Operating margin of 12.1 per cent, first positive quarterly
operating margin since the pandemic began
- Operating revenues of $5.322 billion,
more than double the third quarter of
2021
- Net loss of $508 million
compared to a net loss of $640
million in the third quarter of 2021
- EBITDA margin* of 19.9 per cent for the third quarter of
2022
- Total liquidity of over $10.2
billion at September 30, 2022
MONTREAL, Oct. 28,
2022 /CNW Telbec/ - Air Canada today reported
its third quarter 2022 financial results.
"Air Canada's solid third
quarter results stem from the ongoing restoration of our extensive
network, an improved operational performance, our modern and
efficient fleet, as well as leading products and services, and an
incredible team of employees," said Michael
Rousseau, President and Chief Executive Officer of Air
Canada.
"We generated $644 million in
operating income with a strong operating margin of 12.1 per
cent. This was the first quarter since the pandemic began in which
we delivered positive operating income. In addition, we achieved
significant improvements in other metrics from a year ago.
Operating revenues more than doubled to $5.3
billion, on a capacity growth of 130 per cent, and
EBITDA* increased to over a billion, with a margin of 19.9 per
cent. Yields also improved, helping offset higher fuel
prices. Air Canada Cargo is consistently contributing to our
results and Aeroplan is continuing to perform extremely well with
travel's return. Our transformed loyalty program's gross billings
from points sold, purchase volume on co-brand cards, and new
members are all at record highs.
"Despite the global disruption of air travel, through teamwork
and focused efforts, we safely transported nearly 11.5 million
customers to their destinations this quarter. We are further
encouraged by continuing strong demand, now further stimulated by
the easing of COVID-related restrictions. Advance ticket sales
in the quarter were at 95 per cent of third quarter 2019 levels. In
the third quarter, our adjusted unit cost or adjusted CASM*
improved by 38 per cent to 11.6 cents
compared to the same period last year, and we will continue to
carefully control costs. We ended the quarter with just over
$10.2 billion in
total liquidity.
"Thanks to the hard work and commitment of our employees, after
a difficult June and July, we saw significant operational
improvement throughout August and September, with the operation
today now on par with pre pandemic levels. Still, we know
many customers experienced disruptions travelling this summer, and
we sincerely regret any inconveniences that have occurred. We would
like to thank our customers for their understanding and loyalty and
assure them that the lessons of this operationally challenging
period are now being applied to build greater resiliency going
forward, and to elevate the customer experience overall. Air
Canada marked its
85th anniversary this quarter. We stand on a
robust foundation and, with our most recent financial
results, investments and strategic plan, are confident we have
a bright future in connecting Canada and the world," said Mr. Rousseau.
Third Quarter 2022 Financial Results
Air Canada reported the
following results for the third quarter of 2022:
- Operating capacity, measured by Available Seat Miles
(ASMs) more than doubled from the third quarter of
2021. Capacity in the third quarter
was 79 per cent of the third quarter of
2019, in line with projections in Air Canada's
second quarter 2022 earnings release, dated
August 2, 2022.
- Passenger revenues of $4.818
billion increased about three times from the third quarter
of 2021, representing about 94 per cent of passenger revenues in
the third quarter of 2019.
- Operating revenues of $5.322
billion increased about two-and-a-half times from the third
quarter of 2021.
- Operating expenses of $4.678
billion increased $2.211
billion from the third quarter of 2021.
- Cost per available seat mile (CASM) decreased to 18.3 cents from the third quarter
2021 CASM of 22.2 cents, a sequential decrease from CASM of
20.8 cents in the second quarter of
2022.
- Adjusted cost per available seat mile (Adjusted CASM)* of
11.6 cents compared to third quarter 2021 adjusted CASM
of 18.7 cents, a sequential decrease from Adjusted CASM of
13.1 cents in the second quarter of
2022. Compared to the third quarter of 2019, Adjusted CASM
increased 14.8 per cent.
- Operating income of $644 million
compared to an operating loss of $364
million in the third quarter of 2021, the first quarterly
operating income since the pandemic began.
- EBITDA* (excluding special items) or earnings before interest,
taxes, depreciation, and amortization of $1.057 billion, better than the negative EBITDA
of $67 million in the third quarter
of 2021.
- Net loss of $508 million (or
$1.42 per diluted share), compared to
a net loss of $640 million (or
$1.79 per diluted share) in the third
quarter of 2021. Third quarter 2022 net loss included a foreign
exchange loss of $951
million.
- Net cash flows from operations of $290
million compared to net cash flows from operations of
$305 million in the third 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.
Outlook
For the fourth quarter of 2022, Air Canada plans to increase its
ASM capacity by about 60 per cent from the same quarter
in 2021 (or approximately 85 per cent of fourth
quarter 2019 ASM capacity).
Air Canada is
now providing the following guidance for the full year
2022:
- Air Canada expects to have
increased its full year 2022 ASM capacity by about 148 per
cent from 2021 ASM levels (or about 73 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.
- For 2022, Air Canada expects Adjusted CASM to be about 16 to 18
per cent above 2019 levels. The variance to prior
guidance is mainly due to an increase in wages, salaries and
benefits, costs related to a higher number of passengers carried
versus prior expectations (which translates into higher passenger
service and distribution costs per ASM), as well as the impact
of the weakening of the Canadian dollar.
- For 2022, Air Canada maintains its expectation of an annual
EBITDA margin* of about 8 to 11 per cent.
Major Assumptions
Full year 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 also assumes
that the Canadian dollar will trade, on average, at C$1.30 per U.S. dollar for the full year 2022 and
that the price of jet fuel will average C$1.33 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.
Operating Margin
Operating margin (operating income (loss) as a percentage of
operating revenues) is commonly used in the airline industry and is
used by Air Canada as a means to view profitability after operating
expenses before interest and taxes.
EBITDA, EBITDA margin, and operating margin are reconciled to
GAAP operating income (or loss) as follows:
|
Third
Quarter
|
(Canadian dollars in
millions, except where indicated)
|
2022
|
2021
|
Change
|
Operating income
(loss) – GAAP
|
$
|
644
|
$
|
(364)
|
$
|
1,008
|
Add
back:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
413
|
|
400
|
|
13
|
EBITDA (including
special items)
|
$
|
1,057
|
$
|
36
|
$
|
1,021
|
Remove:
|
|
|
|
|
|
|
Special
items
|
|
-
|
|
(103)
|
|
103
|
EBITDA (excluding
special items)
|
$
|
1,057
|
$
|
(67)
|
$
|
1,124
|
Operating
revenues
|
$
|
5,322
|
$
|
2,103
|
$
|
3,219
|
Operating margin
(%)
|
|
12.1
|
|
(17.3)
|
|
29.4
pp
|
EBITDA margin
(%)
|
|
19.9
|
|
(3.2)
|
|
23.1
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 and expects to add a
further three Boeing 767 freighters in 2024 and 2025 as well as two
new Boeing 777 freighter aircraft with deliveries expected in
2024.
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)
|
Third
Quarter
|
2022
|
2021
|
Change
|
Operating expense –
GAAP
|
$
|
4,678
|
$
|
2,467
|
$
|
2,211
|
Adjusted
for:
|
|
|
|
|
|
|
Aircraft
fuel
|
|
(1,617)
|
|
(472)
|
|
(1,145)
|
Ground package
costs
|
|
(80)
|
|
(23)
|
|
(57)
|
Special
items
|
|
-
|
|
103
|
|
(103)
|
Freighter costs
(excluding fuel)
|
|
(26)
|
|
-
|
|
(26)
|
Operating expense,
adjusted for the above-noted items
|
$
|
2,955
|
$
|
2,075
|
$
|
880
|
ASMs
(millions)
|
|
25,562
|
|
11,116
|
|
130.0 %
|
Adjusted CASM
(cents)
|
¢
|
11.56
|
¢
|
18.65
|
¢
|
(7.09)
|
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)
|
Third
Quarter
|
2022
|
2021
|
$
Change
|
Loss before income
taxes – GAAP
|
$
|
(504)
|
$
|
(679)
|
$
|
175
|
Adjusted
for:
|
|
|
|
|
|
|
Special
items
|
|
-
|
|
(103)
|
|
103
|
Foreign exchange
loss
|
|
951
|
|
136
|
|
815
|
Net interest relating
to employee benefits
|
|
(9)
|
|
1
|
|
(10)
|
(Gain) loss on
financial instruments recorded at fair value
|
|
25
|
|
(114)
|
|
139
|
(Gain) loss on debt
settlements and modifications
|
|
(17)
|
|
110
|
|
(127)
|
Adjusted pre-tax
income (loss)
|
$
|
446
|
$
|
(649)
|
$
|
1,095
|
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.
|
Third
Quarter
|
(Canadian dollars in
millions)
|
2022
|
2021
|
$
Change
|
Net cash flows from
operating activities
|
$
|
290
|
$
|
305
|
$
|
(15)
|
Additions to property,
equipment, and intangible assets, net of
proceeds from sale and leaseback transactions
|
|
(333)
|
|
(149)
|
|
(184)
|
Free cash
flow
|
$
|
(43)
|
$
|
156
|
$
|
(199)
|
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
September 30, 2022, and as at
December 31, 2021.
(Canadian dollars in
millions)
|
September 30,
2022
|
December 31,
2021
|
$
Change
|
Total long-term debt
and lease liabilities
|
$
|
15,799
|
$
|
15,511
|
$
|
288
|
Current portion of
long-term debt and lease liabilities
|
|
1,236
|
|
1,012
|
|
224
|
Total long-term debt
and lease liabilities (including current portion)
|
|
17,035
|
|
16,523
|
|
512
|
Less cash, cash
equivalents and short and long-term investments
|
|
(9,206)
|
|
(9,570)
|
|
364
|
Net debt
|
$
|
7,829
|
$
|
6,953
|
$
|
876
|
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.
Third Quarter 2022 Conference Call
Air Canada will host its
quarterly analysts' call today, Friday,
October 28, 2022, at 9:00 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, 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/a5ecs3mw
By telephone: 416-340-2217 or 1-800-898-3989 (toll-free),
passcode 5899502#
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.
During the period from March
2020 until early 2022, Air Canada and the rest of the global
airline industry 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
significantly, and travel restrictions have been lifted in many
countries, including in Canada,
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, particularly during the summer of 2022,
and has also affected the ability of some of its participants, on
which Air Canada's operations are dependent, to support the surge
in traffic. Over the period from June to mid-July, this led to a
meaningful increase in flight delays and cancellations, and other
operational disruptions and challenges. Flight delays and
cancellations started to decrease in August and there was a
progressive increase in operational stability experienced in the
second half of the third quarter of 2022, however, there can be no
assurance that further significant disruptions will not
reoccur.
Other factors that may cause results to differ materially
from results indicated in forward-looking statements include the
ongoing effects from the COVID-19 pandemic, 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 Third 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.
Internet:
aircanada.com/media
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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)
|
Third
Quarter
|
Financial
Performance Metrics
|
2022
|
2021
|
$
Change
|
Operating
revenues
|
5,322
|
2,103
|
3,219
|
Operating income
(loss)
|
644
|
(364)
|
1,008
|
Loss before income
taxes
|
(504)
|
(679)
|
175
|
Net loss
|
(508)
|
(640)
|
132
|
Adjusted pre-tax income
(loss) (1)
|
446
|
(649)
|
1,095
|
Operating margin
(%)
|
12.1
|
(17.3)
|
29.4 pp
(8)
|
EBITDA (excluding
special items) (1)
|
1,057
|
(67)
|
1,124
|
EBITDA margin
(1) (%)
|
19.9
|
(3.2)
|
23.1 pp
|
Total liquidity
(2)
|
10,236
|
14,504
|
(4,268)
|
Net cash flows from
operating activities
|
290
|
305
|
(15)
|
Free cash flow
(1)
|
(43)
|
156
|
(199)
|
Net debt
(1)
|
7,829
|
7,117
|
712
|
Diluted loss per
share
|
(1.42)
|
(1.79)
|
0.37
|
Operating Statistics
(3)
|
2022
|
2021
|
%
Change
|
Revenue passenger miles
("RPMs") (millions)
|
22,118
|
7,915
|
179.5
|
Available seat miles
("ASMs") (millions)
|
25,562
|
11,116
|
130.0
|
Passenger load factor
%
|
86.5 %
|
71.2 %
|
15.3 pp
|
Passenger revenue per
RPM ("Yield") (cents)
|
21.8
|
20.7
|
5.4
|
Passenger revenue per
ASM ("PRASM") (cents)
|
18.8
|
14.7
|
28.1
|
Operating revenue per
ASM (cents)
|
20.8
|
18.9
|
10.0
|
Operating expense per
ASM ("CASM") (cents)
|
18.3
|
22.2
|
(17.5)
|
Adjusted CASM (cents)
(1)
|
11.6
|
18.7
|
(38.1)
|
Average number of
full-time-equivalent ("FTE") employees (thousands)
(4)
|
31.8
|
21.3
|
49.7
|
Aircraft in operating
fleet at period-end (5)
|
344
|
337
|
2.1
|
Seats dispatched
(thousands)
|
13,951
|
7,094
|
96.7
|
Aircraft frequencies
(thousands)
|
99.6
|
57.4
|
73.6
|
Average stage length
(miles) (6)
|
1,832
|
1,565
|
17.1
|
Fuel cost per litre
(cents)
|
131.8
|
72.9
|
80.7
|
Fuel litres
(thousands)
|
1,227,669
|
648,515
|
89.3
|
Revenue passengers
carried (thousands) (7)
|
11,466
|
5,067
|
126.3
|
(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)
|
Total
liquidity refers to the sum of cash, cash equivalents, short and
long-term investments, and the amounts available under Air Canada's
credit facilities. Total liquidity, as at September 30,
2022, consisted of $9,206 million in cash, cash equivalents, short
and long-term investments and $1,030 million available under
undrawn credit facilities. As at September 30, 2021,
total liquidity amounted to $14,504 million consisted of $9,565
million in cash and cash equivalents, short-term and long-term
investments, and $4,939 million available under undrawn credit
facilities. These amounts also include funds ($231 million at
September 30, 2022 and $92 million at September 30, 2021)
held in trust by Air Canada Vacations in accordance with regulatory
requirements governing advance sales for tour operators. Refer to
section 10 "Accounting Policies" of Air Canada's third
quarter 2022 MD&A for a description of the change in
presentation related to restricted cash effective third quarter of
2022 by which certain amounts have been reclassified to cash and
cash equivalents with the 2021 comparative figures also
reclassified.
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(3)
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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.
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(4)
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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 September 30, 2022, there were
32,166 employees based in Canada.
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(5)
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The number of
aircraft in Air Canada's operating fleet at September 30, 2022 and
at September 30, 2021 include certain aircraft that were grounded
due to the impact of the COVID-19 pandemic. As at September 30,
2022, four aircraft remained grounded pending return to service
maintenance.
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(6)
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Average stage
length is calculated by dividing the total number of available seat
miles by the total number of seats dispatched.
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(7)
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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.
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(8)
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"pp" denotes
percentage points and refers to a measure of the arithmetic
difference between two percentages.
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SOURCE Air Canada