Record Full Year Results For Air Canada, But Q4 Loss Widened
AC is reporting record full year adjusted net incomeof $1.222 billion compared to $531 million in 2014, an improvement of $691 million.
The airline reported operating income of $1.496 billion in 2015, an increase of $681 million or 83.6% from 2014. Net income was $308 million in 2015 compared to $105 million.
"In 2015, we achieved the best financial results in Air Canada's history for a 2nd year in a row, by a substantial margin, underscoring the effectiveness of our business strategy and enhanced competitive position,” said Calin Rovinescu, President & Chief Executive Officer.
“Our results reflect the significant progress being achieved through our various value-enhancing initiatives, including fleet modernization, international expansion, the roll-out of rouge and our network diversification."
It wasn’t all good news for the airline though. AC's Q4 net loss widened to $116 million from $100 million a year earlier. Despite the results from a traditionally difficult quarter, Rovinescu says AC is on track for further success.
"As I have said previously, our plan is not dependent on fuel prices staying at current levels, and the transformative changes we've made in recent years provide us with a cost structure, fleet and flexibility to respond, as we did in 2015, to competitive market conditions, fluctuations in the Canadian dollar and to economic weakness,” the CEO said.
In 2015, system passenger revenues of $12.420 billion increased $616 million or 5.2% from 2014. Traffic growth of 9.6% reflected increases in all of the airline’s 5 geographic markets.