Air Canada Q2 earnings

Dino D'Amore
By Dino D'Amore August 14, 2015 16:52

Air Canada Q2 earnings

Air Canada has reported record second quarter adjusted net income of $250 million or $0.85 per diluted share compared to adjusted net income of $139 million or $0.47 per diluted share in the second quarter of 2014, an improvement of $111 million or approximately 80 per cent. EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rent) rose 30% to $591 million compared to the year-ago period.

The airline recorded an EBITDAR margin of 17.3 percent compared to an EBITDAR margin of 13.8 percent in the second quarter of 2014, an improvement of 3.5 percentage points.

On a GAAP basis, Air Canada reported record second quarter operating income of $323 million compared to operating income of $245 million, an improvement of $78 million or approximately 32 percent from the second quarter of 2014. An operating margin of 9.5 percent in the second quarter of 2015 reflected an improvement of 2.1 percentage points from the same quarter in 2014.

“I am very pleased to report that Air Canada achieved record EBITDAR results for a fifth consecutive quarter in addition to record operating income and adjusted net income results and significant year-over-year improvements to operating margin and EBITDAR margin,” said Calin Rovinescu, President and Chief Executive Officer of Air Canada. “Our record results this quarter reflect a focused execution of our business plan, which we outlined in detail at our June 2015 Investor Day. With our growth this quarter, we have successfully increased passenger revenue by 3.9 per cent, expanded margins, significantly increased our adjusted net income and EBITDAR and continued to improve our return on invested capital. We have delivered on planned cost transformation initiatives and eliminated our significant pension solvency deficit. We have strengthened our balance sheet with increased liquidity levels, improved net cash flows, reduced adjusted net debt, and expect further benefits from our recent credit rating upgrade.”

Air Canada stated that it expects to deliver record results in the third quarter, “with EBITDAR margin expansion versus prior year higher than the 350 basis point expansion recorded in the second quarter”.

The carrier said that demand continues to be robust, while its capacity additions for the year, which are largely in international markets, are important contributors to increased profits.

Dino D'Amore
By Dino D'Amore August 14, 2015 16:52