Rovinescu Confident As AC Announces Q4 & Full-Year Results
Bruce Parkinson, Open Jaw
Air Canada generated record operating revenues of more than $18 billion in 2018, while carrying a record 50.9 million pax.
The airline reported 2018 operating income of $1.174 billion compared to $1.371 billion in 2017, while adjusted pre-tax income amounted to $952 million in 2018 compared to $1.165 billion in 2017.
On a GAAP basis, the airline reported net income of $167 million in 2018 compared to net income of $2.029 billion in 2017. The airline says the decrease of $1.862 billion in net income year-over-year is mainly due to an increase in net tax expense of $981 million, unfavourable foreign exchange results of $437 million and a loss on disposal of assets of $188 million.
Q4 results were positive, raising confidence for 2019.
"I am very pleased with Air Canada's solid fourth quarter results with record EBITDAR of $543 million, and operating income of $122 million. These quarterly results showed an improvement over last year's fourth quarter on many fronts – including passenger revenues, traffic and yield – and complete a strong fiscal year,” said Calin Rovinescu, President and Chief Executive.
“Moreover, they demonstrate the resiliency of our business model and affirm that Air Canada has positioned itself for long-term, sustainable profitability. During the year, we successfully managed many challenges, including intensifying competition and a volatile fuel price environment which resulted in approximately $1 billion in additional costs or 30% more than 2017."
“Combined with a strong adjusted CASM (cost per available seat mile) performance, we ended the year with record unrestricted liquidity of more than $5.7 billion and a leverage ratio of 2.1, positioning us well on our path towards investment grade. The added financial flexibility these results give our company further bolsters our already confident outlook, based on current positive business trends,” Rovinescu said.
"We carried a record 50.9 million customers in 2018, which is evidence of the success of our commercial strategy and the strength of the Air Canada brand. To further heighten our customer appeal, we are investing strategically in product and service enhancements, including a new enhanced reservation platform system planned to start operating later this year, a new loyalty program launching in 2020 to strengthen our recently completed Aimia Canada acquisition and our ongoing fleet renewal.”
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.