Air Canada posts Q1 2013 results

Victoria
By Victoria April 22, 2013 13:57

Air Canada posts Q1 2013 results

 

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. The airline also disclosed a net loss of approximately $260 million versus a net loss of $274 million in the first quarter of 2012, with an operating loss of approximately $106 million versus an operating loss of $91 million in the year-ago period.

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.

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 22, 2013 13:57
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