Air Canada Reports Record Q2 Profit Of $300 Million
Bruce Parkinson, Open Jaw
Air Canada has reported record second quarter net income of $300 million, compared to net income of $186 million in Q2 2016. That happy statistic was one of several positive indicators in the quarterly results.
Others include record second quarter EBITDAR(earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent) of $670 million, operating income of $281 million versus $277 million in the second quarter of 2016 and adjusted net incomeof $215 million in compared to $203 million in the year-before quarter.
"I am pleased to report that, in our second quarter, we delivered record operating revenues, record EBITDAR and ended with record liquidity levels, exceeding last year's financial results and analysts' consensus estimates for EBITDAR," said President & CEO Calin Rovinescu.
"Moreover, we delivered an excellent unit cost performance and our unit revenue, on a stage-length adjusted basis, increased 1.6% versus last year's quarter. These are important drivers of margin expansion and are the result of the successful execution of our business plan.
It was a quarter of growth and expansion for the airline, with the launch of 16 international and U.S. trans-border routes. Capacity growth was 13.5%, and AC absorbed all of it with a 13.6% increase in traffic. On 29JUN, AC carried a one-day record 167,000 pax.
“Demand continues to be robust in a stable fuel and pricing environment as we move into what has historically been our most important quarter given the travel demands and patterns of our North American customers,” Rovinescu added.
Air Canada achieved record system passenger revenues of $3.517 billion in Q2, up $374 million or 11.9% from the second quarter of 2016. And as of 30JUN, unrestricted liquidity (cash, short-term investments and undrawn lines of credit) amounted to a record $4.493 billion.
Bruce Parkinson Editor-in-Chief
An observer and analyst of the Canadian and international travel industries for over 25 years.