Air Canada has announced robust results for its third quarter of 2024, attributing its success to a surge in international travel demand and a significant rebound in business travel. The airline reported operating revenues of $6.1 billion and an operating income of $1 billion, exceeding market expectations. Adjusted EBITDA reached $1.5 billion, and adjusted earnings per share stood at $2.57, reflecting strong operational performance.
President and CEO Michael Rousseau highlighted the company’s achievements, noting an eight-percentage-point improvement in on-time performance compared to the same period last year. He expressed pride in navigating pilot contract negotiations without major disruptions for customers, indicating a commitment to operational excellence during peak travel season.
Looking ahead, Air Canada has raised its profit forecast for 2024, now anticipating adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $3.5 billion, a significant increase from last year’s $2.51 billion. This revision is an improvement over the previous guidance of $3.1 billion to $3.4 billion, showcasing the airline’s adaptability to evolving market conditions.
Rousseau remains optimistic about the demand landscape, stating, “The demand environment remains favourable.” He noted that the airline is taking proactive measures to manage the evolving fuel price environment and other contract-related adjustments, ensuring alignment with its strategic goals.
As the airline continues to recover from pandemic-related challenges, it is also addressing debt accrued during that time. Rousseau announced a new share buyback program designed to mitigate shareholder dilution from past financing decisions, while also emphasizing the company’s commitment to debt reduction and growth funding. This strategic move aligns with Air Canada’s capital allocation roadmap, which will be further detailed during the upcoming Investor Day on December 17, 2024.
In addition to its financial performance, Air Canada has been expanding its international reach. The airline recently forged a codeshare agreement with Air Baltic to enhance its presence in Northern Europe and announced an increase in flights to China, alongside added capacity for other Asia-Pacific routes. Furthermore, Air Canada has been honored with the Five Star Global Airline Award at the Airline Passenger Experience Association (APEX) 2025 Awards, marking the sixth recognition in seven years based on customer feedback.
Source: Swifteradio.com
