Air Canada Reports Q2 Results
By Wings Staff
Air Canada reported second quarter 2018 earnings of $646 million under its adjusted EBITDAR formula, which accounts for earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent. In the second quarter of last year, the airline earned $681 million under EBITDAR.
By Wings Staff
Air Canada reported operating income of $226 million in Q2 2018 compared to operating income of $292 million in the second quarter of 2017, while posting a net income loss of -$77 million in Q2 2018 versus a positive $311 million in Q2 2017. The second quarter of 2018 included a loss on disposal of assets of $186 million, explains the airline, and losses on foreign exchange of $25 million.
“I am pleased to report another solid quarter of revenue growth, cost containment and unrestricted liquidity, in the face of significantly higher fuel prices,” said Calin Rovinescu, president and CEO of Air Canada. Rovinescu continues to explain, that during the second quarter, passenger revenue climbed 10.4 per cent to a record $4.3 billion.
“We reported a solid 2.7 per cent increase in passenger revenue per available seat mile, primarily driven by a higher yield… Our unrestricted liquidity totaled a record $5.064 billion at quarter-end,” he said. “We achieved these results despite contending with a 31 per cent rise in jet fuel price per litre from a year ago.”
Rovinescu estimates Air Canada we will be able to mitigate approximately 75 per cent of the expected 2018 annual fuel price increase through fare increases, as well as commercial initiatives and other cost transformation programs. “We launched 25 new routes this summer, introduced Air Canada Signature Service for North American premium customers, began offering satellite Wi-Fi on our wide-body international fleet, and we were recognized as one of the top five brands to work for in Canada.” He also pointed to new agreements with Air China, which many predict will soon become the largest aviation market in the world.
In the second quarter of 2018, Air Canada carried approximately 12.5 million passengers, an increase compared to last year’s corresponding quarter at around 11.9 million passengers.