Air Canada is reporting record full year 2016 EBITDAR(earnings before interest, taxes, depreciation, amortization and aircraft rent), excluding special items, of $2.768 billion, compared to the previous record of $2.542 billion recorded in 2015, an increase of $226 million or 8.9%.
"In 2016, we achieved outstanding results, surpassing the previous records for EBITDAR, as well as for passenger and operating revenues, underscoring the effectiveness of our business strategy and improved competitive position," said Calin Rovinescu, President and Chief Executive Officer.
"Traffic for the year grew by more than 13% with increases in all five geographic markets and we reached a new record of serving close to 45 million customers on our expanding global network, with the launch of 28 new routes including 15 new international and 12 U.S. transborder routes,” Rovinescu added.
AC generated adjusted net income of $1.147 billion compared to adjusted net income of $1.222 billion. The airline reported net income of $876 million in 2016 compared to $308 million in 2015.
Record system passenger revenues of $13.148 billion were up $728 million or 5.9% from 2015. Traffic growth of 13.2% reflected traffic increases in all of the airline’s five geographic markets.
Yield declined by 6.6% during the year, which AC says is due to a 5.1% increase in average stage length (which reduced system yield by 2.8 percentage points) and an increase in the number of seats in long-haul leisure markets (at, on average, lower fares).
The airline says other factors, including lower carrier surcharges, a higher proportional growth of international connecting traffic and competitive pressures in the domestic, European and Pacific markets, also contributed to the yield decrease.
Rovinescu says AC created 1,500 jobs in 2015, between the mainline, Rouge and Express services.
"Last week, on the occasion of Air Canada's 80th anniversary year and Canada's 150th, we unveiled a new livery for the fleet and new uniforms for our employees, just a few of the many ways we continue to refresh our product and invest in our employees and in our customers' travel experience.”