Air Canada Suspends 2019 Financial Guidance After MAX Grounding
Bruce Parkinson, Open Jaw
Air Canada announced today that, following Transport Canada's safety notice closing Canadian airspace to Boeing 737 MAX aircraft until further notice, the Federal Aviation Administration's temporary grounding order and Boeing's decision to suspend MAX deliveries to airline customers, it is suspending all financial guidance it provided in respect of the first quarter and full year 2019.
“In light of the current uncertainty, Air Canada is suspending all financial guidance it provided on 15FEB, 2019 and 28FEB, 2019 in respect of the 2019 financial year,” the company said in a statement.
“The financial guidance provided for the years 2020 and 2021 with respect to annual EBITDA margin (earnings before interest, taxes, depreciation, amortization and impairment, as a percentage of operating revenue) and annual ROIC (return on invested capital) as well as the cumulative free cash flow over the 2019-2021 period remains in place.”
Air Canada says it continues to adapt a contingency plan to address the evolving situation and will provide updates as developments warrant.
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.