Air Canada narrows net loss during the first quarter

Victoria
By Victoria April 24, 2013 11:56

Air Canada narrows net loss during the first quarter

Air Canada has posted an adjusted net loss of approximately $143 million versus an adjusted net loss of $162 million in the first quarter of 2012. It’s net loss of approximately $260 million versus a net loss of $274 million in the first quarter of 2012. The airline posted an operating loss of approximately $106 million versus an operating loss of $91 million in the first quarter of 2012.
Earnings before interest, taxes, depreciation, amortization and impairment, and aircraft rent was approximately $145 million versus $174 million in the first quarter of 2012
In the first quarter of 2013, Air Canada’s financial results were negatively impacted by an estimated $10 million due to flight cancellations caused by severe weather conditions and operational challenges at the airline’s major Canadian airport hubs, as well as aircraft deicing service delays at Toronto Pearson International Airport. A higher proportion of leisure passengers versus business passengers, in part due to a shift of the Easter holiday, and an unfavourable foreign currency impact on passenger revenues also contributed to the lower operating results year-over-year. In addition, Air Canada expects to record an impairment charge of $24 million related to Airbus A340-300 aircraft (none of which are operated by Air Canada) which is reflected in Air Canada’s preliminary operating loss and net loss results.
Air Canada estimates that its passenger revenue per available seat mile (RASM) in the first quarter of 2013, on a system-wide basis, increased by approximately 1.1% as compared to the first quarter of 2012, due to passenger load factor improvements partly offset by lower yields.
Air Canada also estimates that, in the first quarter of 2013, its adjusted cost per available seat mile (adjusted CASM), which excludes fuel expense, the cost of ground packages at Air Canada Vacations and unusual items (such as impairment charges) increased approximately 1.4% compared to the first quarter of 2012, a more favourable outcome than the range of the 3 to 4% increase previously projected in its February 7, 2013 news release.
Adjusted net debt is estimated to be $3,987 million at March 31, 2013, a decrease of $246 million from March 31, 2012, with cash and short-term investments estimated to represent 17% of 12-month trailing operating revenues at the end of the first quarter of 2013.
Air Canada’s system capacity, as measured by available seat miles (ASMs), in the first quarter of 2013 was 1.1% lower than the first quarter of 2012, within the range of the 0 to 1.5% decrease previously projected in its February 7, 2013 news release.

Victoria
By Victoria April 24, 2013 11:56
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