Quarter Billion Turnaround: Air Canada Reports Record Q1 Results

Open Jaw

AC has reported 1st quarter adjusted net income of $122 million, a sharp turnaround from an adjusted net loss of $132 million in the 1 st quarter of 2014, an improvement of $254 million. Net loss narrowed to CAD$309 million in the quarter ended March 31 from CAD$341 million a year earlier.

EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rent) amounted to $442 million compared to $147 million in the same quarter in 2014, an increase of $295 million or 200% year-over-year.

AC reported operating income of $200 million in the 1st quarter of 2015 compared to an operating loss of $62 million in Q1 2014, an improvement of $262 million. The airline recorded an operating margin of 6.2% compared to a negative operating margin of 2.0% in the 1 st quarter of 2014, an improvement of 8.2 percentage points.

"I am delighted to report the best 1st quarter financial performance in Air Canada's history," said Calin Rovinescu, President & Chief Executive Officer. "Record results in adjusted net income, operating income, operating margin, EBITDAR, passenger revenues and passenger load factor for the quarter all underscore our team's success in executing on our value-enhancing strategies. We have continued to see a strong demand environment, and in the 1 st quarter our margins expanded dramatically, bolstered by strong cost control, with adjusted CASM declining 1.8% despite the weaker Canadian dollar, and solid traffic growth particularly on leisure sun routes."

Rovinescu is equally positive on prospects for the remainder of 2015. "While fuel prices remain volatile, in 2015 we expect to continue to expand margins, increase adjusted net income, strengthen our balance sheet and create value for shareholders.

"I would like to thank Air Canada's 27,000 employees for their hard work earning the loyalty of our customers as we continue to implement our commercial strategy focused on international growth with a renewed fleet and onboard product," Rovinescu added.

AC continues to expand rapidly – and absorb new capacity. Q1 traffic was up 10.9% on capacity growth of 9.3%.

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