Rovinescu Says AC 2017 Results Reveal “Extent Of Our Transformation”
Bruce Parkinson, Open Jaw
Air Canada’s Q4 revenue and adjusted earnings came in ahead of analyst estimates, while the airline posted record-high annual passenger revenue of $14.5 billion for 2017.
"Our strong 2017 results underscore the effectiveness of our transformation strategy, as well as the success of our global expansion and the power of our comprehensive network,” said CEO Calin Rovinescu.
“We profitably expanded our global network with 30 new routes launched, and carried a record 48 million customers, while maintaining our focus on cost discipline and continuing to improve margins.”
AC reported record full year 2017 EBITDAR (earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent) of $2.921 billion compared to the previous record full year 2016 EBITDAR of $2.768 billion, an increase of $153 million.
2017 operating income was $1.364 billion compared to 2016 operating income of $1.345 billion. Adjusted pre-tax incomeamounted to $1.158 billion in 2017 compared to $1.148 billion in 2016. For Q4, adjusted net income was $61 million, or 22 cents per share — ahead of analyst estimates of 14 cents per share.
"The extent of our transformation is evident in our continuing records for financial results,” Rovinescu added.
“In 2017, we achieved our fifth consecutive year of record EBITDAR, passenger revenue climbed 10% to a record $14.5 billion, and our unrestricted liquidity amounted to $4.2 billion at year-end. Our transformation has made Air Canada profitable while reducing risk in many areas, such as level of indebtedness and pension obligations, the twin pillars of long-term sustainability.”
Bruce Parkinson Editor-in-Chief
An observer and analyst of the Canadian and international travel industries for over 25 years, Bruce uses the pre-dawn hours to prepare a daily news and information package to keep industry members up to date.