AC Updates Key Financial Targets Ahead Of Investor Day
Bruce Parkinson, Open Jaw
Air Canada has updated its key financial targets in conjunction with its 2019 Investor Day to be held today in Toronto.
From 2019 until 2021, Air Canada is targeting an annual EBITDA margin (earnings before interest, taxes, depreciation, amortization and impairment, as a percentage of operating revenue) of 19-22% and an annual return on invested capital (ROIC) of 16-20%.
The company is projecting cumulative free cash flow of $4.0-to-$4.5 billion over the same period, including projected free cash flow of between $400 million and $600 million in 2019, and a leverage ratio of no more than 1.2 (measured by net debt over EBITDA) by the end of 2019.
"Since Air Canada held its first Investor Day in 2013, we have repeatedly met or exceeded virtually all of our key financial targets, demonstrating management's ability to consistently deliver on our commitments and successfully execute on our business plans," said Calin Rovinescu, President and CEO.
"Moreover, we keep setting ambitious targets for Air Canada to drive continuous improvement and further increase shareholder value. Our share price has appreciated over 1,300% over the last five years and over 4,000% since April 1, 2009 when we embarked on our transformation strategy to position Air Canada for long-term, sustainable profitability. In addition, we are now on course for our objective of achieving an investment grade credit rating."
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.