- First quarter operating revenues of $2.573 billion, or about three-and-a-half times
first quarter 2021 operating revenues
- First quarter 2022 operating loss of $550 million compared to an operating loss of
$1.049 billion in the first quarter
of 2021
- Advance ticket sales grew about $1.2
billion in the first quarter of 2022 from year end
2021
- Airbus A321XLR order increased by four to 30 aircraft with
IAE to supply related PW1100G-JM engines
MONTREAL, April 26,
2022 /CNW Telbec/ - Air Canada today reported its
first quarter 2022 financial results.
"The substantial year-over-year improvement in Air Canada's
first quarter results is clear evidence that a recovery is
underway. Our strong improvement is a testament to our
employees, and I thank them for their hard work taking care of our
customers throughout more than two years of a global pandemic. Now,
our employees are demonstrating this same level of determination,
commitment and passion in executing on our recovery strategy," said
Michael Rousseau, President and
Chief Executive Officer of Air Canada.
"The year began with weakness brought on by the Omicron variant
and travel restrictions. However, we quickly rebounded in March
with passenger volumes exceeding the strong December levels and
passenger ticket sales in March 2022
over 90 per cent of March 2019
levels, a leading indicator to much stronger 2022 second and third
quarter results. For the quarter, Air Canada had operating revenues
of $2.573 billion, more than triple
that of the same quarter in the prior year. This was
accompanied by a strict cost discipline that reduced adjusted CASM*
by over six per cent from the fourth quarter of 2021. Quarterly
EBITDA*, while a negative $143
million, improved $620 million
over last year and we ended the quarter with $10.162 billion in unrestricted liquidity, close
to 2021 year-end levels.
"In anticipation of our recovery, Air Canada has kept the course
with key long-term projects to increase and diversify revenue and
lower costs. One such program is the expansion of Air Canada Cargo,
with quarterly revenue up 42 per cent to $398 million from the first quarter of 2021, and
now further expanded with the addition of two new Boeing 767-300
freighters to be delivered in 2022. The renegotiation of key
engine maintenance contracts completed in the quarter, will also
yield savings over the remaining life of the contracts.
Aeroplan air redemption bookings in the quarter exceeded
those of the same quarter in 2019 by 19 per cent. The
relaunched program saw the highest new member acquisitions and
redemptions in a quarter, and generated third-party gross billings
exceeding first quarter 2019 levels by 21 per cent," said Mr.
Rousseau.
"Air Canada is rapidly adapting
for the post-pandemic world. We are doing our part by contributing
to the travel of Ukrainians to Canada, with a substantial donation of 100
million Aeroplan points. We have also advanced our ESG goals
in the quarter by announcing an order for 26 fuel-efficient Airbus
A321XLR aircraft, which we have now increased to 30 aircraft. As
well, we have recently entered into a long-term agreement with
International Aero Engines, LLC (Pratt & Whitney) for the
selection of the PW1100G-JM engines, spare engines and related
maintenance services for these new aircraft. We are
responding to the evolving competitive landscape through our Rise
Higher strategy to elevate all aspects of our business,
particularly as it relates to the customer experience. Given
pent-up travel demand, the demonstrated loyalty of our customers,
and the expected further removal of travel-related government
restrictions, Air Canada anticipates its recovery will gain
momentum through the balance of 2022 and beyond," said Mr.
Rousseau.
First Quarter 2022 Financial
Results
- In the first quarter of 2022, Air Canada's operating capacity,
measured by Available Seat Miles (ASMs) increased about 3.4 times
from the first quarter of 2021. When compared to the first quarter
of 2019, ASM capacity represented a decline of 45 per cent, which
was generally in line with the capacity expectations projected in
Air Canada's fourth quarter 2021 earnings release dated
February 18, 2022.
- First quarter 2022 passenger revenues of $1.917 billion increased nearly five times from
the first quarter of 2021.
- First quarter 2022 operating revenues of $2.573 billion increased about three-and-a-half
times from the first quarter of 2021.
- First quarter 2022 total operating expenses of $3.123 billion increased $1.345 billion or 76 per cent from the first
quarter of 2021.
- First quarter 2022 cost per available seat mile (CASM) of
21.8 cents compared to first quarter
2021 CASM of 42.2 cents.
- First quarter 2022 adjusted cost per available seat mile*
(adjusted CASM) of 15.6 cents
compared to first quarter 2021 adjusted CASM of 40.4 cents.
- First quarter 2022 EBITDA (excluding special items)* or
earnings before interest, taxes, depreciation and amortization of
negative $143 million compared to
negative EBITDA of $763 million in
the first quarter of 2021.
- First quarter 2022 net loss of $974
million or $2.72 per diluted
share compared to a net loss of $1.304
billion or $3.90 per diluted
share in the first quarter of 2021.
- First quarter 2022 cash from operations was $335 million compared to cash used in operations
of $888 million in the first quarter
of 2021, an improvement of $1,223
million driven by improved operating results and strong
advance ticket sales. Free cash flow of $59
million in the first quarter of 2022 improved by
$1,221 million when compared to the
same period in 2021.
* EBITDA, EBITDA margin, adjusted CASM and free
cash flow (discussed further below) are non-GAAP
financial measures or non-GAAP ratios. Such measures are not
recognized measures for financial statement presentation under
GAAP, do not have standardized meanings, may not be comparable to
similar measures presented by other entities and should not be
considered a substitute for or superior to GAAP results. Refer to
the "Non-GAAP Financial Measures" section of this news release for
descriptions of Air Canada's non-GAAP financial measures and
non-GAAP ratios and for a reconciliation of Air Canada non-GAAP
measures to the most comparable GAAP financial measure.
First Quarter 2022
Overview
Over the quarter, and until February 28,
2022, all travellers, regardless of vaccination status, were
required to provide a negative pre-entry COVID-19 PCR test result
taken within 72 hours of departure or a proof of a positive test
result received in the previous 11 to 180 days. On February 15, 2022, the Government of Canada announced changes to certain travel
restrictions for fully vaccinated travellers. Refer to
section 4 "Overview & First Quarter 2022 Highlights" of Air
Canada's First Quarter 2022 MD&A for additional
information on such changes.
On March 17, 2022, the Government
of Canada announced additional
changes that came into effect on April 1,
2022, allowing for fully vaccinated travellers to no longer
be required to provide a pre-entry COVID-19 test result to enter
Canada by air, land or water.
Foreign nationals who do not meet the requirements to be considered
fully vaccinated are not able to enter Canada unless they meet an exemption set out
in the Orders made under the Quarantine Act. Unvaccinated or
partially vaccinated travellers allowed to enter Canada remain subject to the federal
requirement to quarantine and take a COVID-19 PCR test at the time
of arrival and on day eight after arrival.
Route Network and
Schedule
Since the onset of the pandemic, Air Canada has actively managed
its ASM capacity based on prevailing market trends and travel
demand. In January 2022, in response
to the emergence of the Omicron variant and the associated
short-term decline in demand, Air Canada suspended flights to
certain Caribbean destinations
from January 24 to April 30,
2022.
In February 2022, Air Canada made
the following announcements (adding to the schedule updates
announced in the second half of 2021):
- An expansion of its North American network for Summer 2022 that
includes the launch of new service on four transborder and three
domestic routes, as well as the restoration of 41 North American
routes. Air Canada plans to
operate to 51 Canadian and 46 U.S airports this summer and offer
customers the largest network and most travel options of any
Canadian carrier.
- Expanded Summer 2022 international schedule with 34 routes
relaunching across the Atlantic and Pacific.
Further information on the schedule updates announced
in 2021 can be found in section 4 "2021 Highlights" of Air
Canada's 2021 MD&A.
Outlook
For the second quarter of 2022, Air Canada plans to increase its
ASM capacity by approximately 414 per cent from the same
quarter in 2021 (or about 73 per cent of second
quarter 2019 ASM capacity).
Air Canada is reiterating the
following guidance for the full year 2022 provided in its news
release dated March 30, 2022:
- Air Canada plans to increase
its full year 2022 ASM capacity by about 150 per cent from 2021 ASM
levels (or about 75 per cent of 2019 ASM levels). Air Canada will continue to adjust capacity and
take other measures as required, including to account for passenger
demand, public health guidelines, and travel restrictions globally,
as well as other factors, such as inflation and other cost
pressures.
- For 2022, Air Canada expects adjusted cost per available seat
mile (CASM)* to remain about 13 to 15 per cent above 2019
levels.
- For 2022, Air Canada expects an annual EBITDA margin* of about
8 to 11 per cent.
Major Assumptions
Assumptions were made by Air Canada in preparing and making
forward-looking statements. Among these, Air Canada assumes
moderate Canadian GDP growth for 2022. Air Canada also expects that the Canadian dollar
will trade, on average, at C$1.26 per
U.S. dollar for the full year 2022 and that the price of jet fuel
will average $1.24 per litre for the
full year 2022.
Non-GAAP Financial
Measures
Below is a description of certain non-GAAP financial measures
used by Air Canada to provide readers with additional information
on its financial and operating performance. Such measures are not
recognized measures for financial statement presentation under
GAAP, do not have standardized meanings, may not be comparable to
similar measures presented by other entities and should not be
considered a substitute for, or superior to, GAAP results. Refer to
the discussion below for descriptions of non-GAAP financial
measures and to the tables accompanying
this news release for reconciliations of the non-GAAP
financial measures, used in this news release to the most
comparable GAAP financial measures.
EBITDA
EBITDA (earnings before interest, taxes, depreciation and
amortization) is commonly used in the airline industry and is used
by Air Canada as a means to view operating results before interest,
taxes, depreciation and amortization as these costs can vary
significantly among airlines due to differences in the way airlines
finance their aircraft and other assets. Air Canada excludes special items from EBITDA as
these items may distort the analysis of certain business trends and
render comparative analysis across periods or to other airlines
less meaningful.
EBITDA Margin
EBITDA margin (EBITDA as a percentage of operating revenue) is
commonly used in the airline industry and is used by Air Canada as
a means to measure the operating margin before interest, taxes,
depreciation and amortization as these costs can vary significantly
among airlines due to differences in the way airlines finance their
aircraft and other assets.
EBITDA and EBITDA margin are reconciled to GAAP operating income
(loss) as follows:
|
First
Quarter
|
(Canadian dollars in
millions, except where indicated)
|
2022
|
2021
|
Change
|
Operating loss –
GAAP
|
$
|
(550)
|
$
|
(1,049)
|
$
|
499
|
Add
back:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
403
|
|
413
|
|
(10)
|
EBITDA (including
special items)
|
$
|
(147)
|
$
|
(636)
|
$
|
489
|
Remove:
|
|
|
|
|
|
|
Special
items
|
|
4
|
|
(127)
|
|
131
|
EBITDA (excluding
special items)
|
$
|
(143)
|
$
|
(763)
|
$
|
620
|
Operating margin
(%)
|
|
(21)
|
|
(144)
|
|
123
pp
|
EBITDA margin
(%)
|
|
(6)
|
|
(105)
|
|
99 pp
|
Adjusted Cost per Available Seat
Mile (CASM)
Air Canada uses adjusted CASM
to assess the operating and cost performance of its ongoing airline
business without the effects of aircraft fuel expense, the cost of
ground packages at Air Canada Vacations, freighter costs, and
special items as these items may distort the analysis of certain
business trends and render comparative analysis across periods or
to other airlines less meaningful.
In calculating adjusted CASM, aircraft fuel expense is excluded
from operating expense results as it fluctuates widely depending on
many factors, including international market conditions,
geopolitical events, jet fuel refining costs and Canada/U.S. currency exchange rates. Air
Canada also incurs expenses
related to ground packages at Air Canada Vacations which some
airlines, without comparable tour operator businesses, may not
incur. In addition, these costs do not generate ASMs and therefore
excluding these costs from operating expense results provides for a
more meaningful comparison across periods when such costs may
vary.
Air Canada also incurs expenses
related to the operation of freighter aircraft which some airlines,
without comparable cargo businesses, may not incur. Air
Canada introduced one Boeing 767
dedicated freighter to its fleet in December
2021 and expects to have a fleet of seven Boeing 767
dedicated freighters in the next 12-18 months. Prior to 2021, Air
Canada did not incur any costs related to the operation of
dedicated freighter aircraft. These costs do not generate ASMs and
therefore excluding these costs from operating expense results
provides for a more meaningful comparison across periods when such
costs may vary.
Excluding aircraft fuel expense, the cost of ground packages at
Air Canada Vacations, dedicated freighter expenses and special
items from operating expenses generally allows for a more
meaningful analysis of Air Canada's operating expense performance
and a more meaningful comparison to that of other airlines.
Adjusted CASM is reconciled to GAAP operating expense as
follows:
(Canadian dollars in
millions, except where indicated)
|
First
Quarter
|
2022
|
2021
|
Change
|
Operating expense –
GAAP
|
$
|
3,123
|
$
|
1,778
|
$
|
1,345
|
Adjusted
for:
|
|
|
|
|
|
|
Aircraft
fuel
|
|
(750)
|
|
(200)
|
|
(550)
|
Ground package
costs
|
|
(129)
|
|
(5)
|
|
(124)
|
Special
items
|
|
(4)
|
|
127
|
|
(131)
|
Freighter
costs
|
|
(11)
|
|
-
|
|
(11)
|
Operating expense,
adjusted for the above-noted items
|
$
|
2,229
|
$
|
1,700
|
$
|
529
|
ASMs
(millions)
|
|
14,297
|
|
4,211
|
|
239.5%
|
Adjusted CASM
(cents)
|
¢
|
15.59
|
¢
|
40.37
|
¢
|
(24.78)
|
Adjusted Pre-tax Income
(Loss)
Adjusted pre-tax income (loss) is used by Air Canada to assess
the overall pre-tax financial performance of its business without
the effects of foreign exchange gains or losses, net interest
relating to employee benefits, gains or losses on financial
instruments recorded at fair value, gains or losses on sale and
leaseback of assets, gains or losses on disposal of assets, gains
or losses on debt settlements and modifications, and special items
as these items may distort the analysis of certain business trends
and render comparative analysis across periods or to other airlines
less meaningful.
Adjusted pre-tax income (loss) is reconciled to GAAP income
(loss) before income taxes as follows:
(Canadian dollars in
millions)
|
First
Quarter
|
2022
|
2021
|
$
Change
|
Loss before income
taxes – GAAP
|
$
|
(814)
|
$
|
(1,387)
|
$
|
573
|
Adjusted
for:
|
|
|
|
|
|
|
Special
items
|
|
4
|
|
(127)
|
|
131
|
Foreign exchange
gain
|
|
(99)
|
|
(67)
|
|
(32)
|
Net interest relating
to employee benefits
|
|
(4)
|
|
4
|
|
(8)
|
Loss on financial
instruments recorded at fair value
|
|
173
|
|
223
|
|
(50)
|
Loss on debt
settlements and modifications
|
|
-
|
|
19
|
|
(19)
|
Adjusted pre-tax
loss
|
$
|
(740)
|
$
|
(1,335)
|
$
|
595
|
Free Cash Flow
Air Canada uses free cash flow
as an indicator of the financial strength and performance of its
business, indicating the amount of cash Air Canada can generate
from operations and after capital expenditures. Free cash flow is
calculated as net cash flows from operating activities minus
additions to property, equipment, and intangible assets, and is net
of proceeds from sale and leaseback transactions.
The table below provides the calculation of free cash flow for
Air Canada for the periods indicated.
|
First
Quarter
|
(Canadian dollars in
millions)
|
2022
|
2021
|
$
Change
|
Net cash flows from
(used in) operating activities
|
$
|
335
|
$
|
(888)
|
$
|
1,223
|
Additions to property,
equipment, and intangible assets, net of proceeds from sale and
leaseback transactions
|
|
(276)
|
|
(274)
|
|
(2)
|
Free cash
flow
|
$
|
59
|
$
|
(1,162)
|
$
|
1,221
|
Additional Financial
Measures
Net Debt
Net debt is an additional GAAP financial measure and a key
component of the capital managed by Air Canada and provides
management with a measure of its net indebtedness.
The table below reflects Air Canada's net debt balances as at
March 31, 2022, and as at
December 31, 2021.
(Canadian dollars in
millions)
|
March 31,
2022
|
December 31,
2021
|
$
Change
|
Total long-term debt
and lease liabilities
|
$
|
15,126
|
$
|
15,511
|
$
|
(385)
|
Current portion of
long-term debt and lease liabilities
|
|
1,117
|
|
1,012
|
|
105
|
Total long-term debt
and lease liabilities (including current portion)
|
|
16,243
|
|
16,523
|
|
(280)
|
Less cash, cash
equivalents and short and long-term investments
|
|
(9,212)
|
|
(9,403)
|
|
191
|
Net debt
|
$
|
7,031
|
$
|
7,120
|
$
|
(89)
|
For further information on Air Canada's public disclosure file,
including Air Canada's 2021 Annual Information Form dated
February 25, 2022, consult SEDAR at
www.sedar.com.
First Quarter 2022 Conference
Call
Air Canada will host its
quarterly analysts' call today, Tuesday,
April 26, 2022, at 8:00 a.m.
ET. Michael Rousseau,
President and Chief Executive Officer, Amos
Kazzaz, Executive Vice President and Chief Financial
Officer, and Lucie Guillemette,
Executive Vice President and Chief Commercial Officer, will be
available for analysts' questions. Immediately following the
analysts' Q&A session, Mr. Kazzaz and Pierre Houle, Vice President and Treasurer, will
be available to answer questions from term loan B lenders and
holders of Air Canada bonds.
Media and the public may access this call on a listen-in basis.
Details are as follows:
Live audio webcast:
https://edge.media-server.com/mmc/p/xqqqtp6o
By
telephone:
416-406-0743 or 1-800-952-5114 (toll-free), passcode 3762302#
Please allow 10 minutes to be connected to the conference
call.
CAUTION REGARDING
FORWARD-LOOKING INFORMATION
This news release includes forward-looking statements
within the meaning of applicable securities laws. Forward-looking
statements relate to analyses and other information that are based
on forecasts of future results and estimates of amounts not yet
determinable. These statements may involve, but are not limited to,
comments relating to guidance, strategies, expectations, planned
operations or future actions. Forward-looking statements are
identified using terms and phrases such as "preliminary",
"anticipate", "believe", "could", "estimate", "expect", "intend",
"may", "plan", "predict", "project", "will", "would", and similar
terms and phrases, including references to assumptions.
Forward-looking statements, by their nature, are based on
assumptions including those described in this news release and the
documents incorporated by reference herein and are subject to
important risks and uncertainties. Forward-looking
statements cannot be relied upon due to, among other things,
changing external events and general uncertainties of the business
of Air Canada. Actual results may differ materially from results
indicated in forward-looking statements due to a number of factors,
including those discussed below.
Air Canada and the rest of the
global airline industry have faced significantly
lower traffic than in 2019, and a corresponding
decline in revenue and cash flows, as a result of the
COVID-19 pandemic and the travel restrictions imposed in many
countries around the world including in Canada. Conditions have
improved and travel restrictions have been lifted in
many countries, but Air Canada cannot predict the timing and
extent of the return to pre-pandemic levels. The COVID-19
pandemic may continue to have significant economic impacts,
including on business and consumer spending and behaviour.
This may in turn significantly impact demand for
travel. Notably, the return of business travel
to pre-pandemic levels may be challenged by the evolving nature of
business models and remote-work practices adopted
during the COVID-19 pandemic, such as
the use of videoconferencing and other remote-work
technologies, as well as by interest in more
sustainable practices. Air Canada is actively
monitoring key indicators relevant to its rebuilding
plans and will adjust as required.
This will include the evolving impact of the
pandemic, such as the course of the virus
and its variants, government health measures and
other actions, passenger interest and
willingness to travel, the complexities of restarting an
industry whose many stakeholders must coordinate with
each other in doing so, and the timing and extent of
recovery in the international and business travel
segments. None of these factors can be
predicted with certainty.
Other factors that may cause results to differ materially
from results indicated in forward-looking statements include
economic and geopolitical conditions, such as the military conflict
between Russia and Ukraine, Air Canada's ability to successfully
achieve or sustain positive net profitability, industry and market
conditions and the demand environment, Air Canada's ability to pay
its indebtedness and maintain or increase liquidity, competition,
Air Canada's dependence on technology, cybersecurity risks, energy
prices, Air Canada's ability to successfully implement appropriate
strategic and other important initiatives (including Air Canada's
ability to manage operating costs), other epidemic diseases,
terrorist acts, war, Air Canada's dependence on key suppliers, Air
Canada's ability to successfully operate its loyalty program,
interruptions of service, Air Canada's ability to attract and
retain required personnel, the availability of Air Canada's
workforce, casualty losses, changes in laws, regulatory
developments or proceedings, climate change and environmental
factors (including weather systems and other natural phenomena and
factors arising from man-made sources), Air Canada's dependence on
regional and other carriers, Air Canada's ability to preserve and
grow its brand, employee and labour relations and costs, Air
Canada's dependence on Star Alliance® and joint ventures, pending
and future litigation and actions by third parties, currency
exchange, limitations due to restrictive covenants, insurance
issues and costs, pension plans, as well as the factors identified
in Air Canada's public disclosure file available at
www.sedar.com and, in particular, those
identified in section 18 "Risk Factors" in Air Canada's 2021
MD&A and section 14 "Risk Factors" of Air Canada's First
Quarter 2022 MD&A. The forward-looking statements contained or
incorporated by reference in this news release represent Air
Canada's expectations as of the date of this news release (or as of
the date they are otherwise stated to be made) and are subject to
change after such date. However, Air Canada disclaims any intention
or obligation to update or revise any forward-looking statements
whether because of new information, future events or otherwise,
except as required under applicable securities regulations.
About Air Canada
Air Canada is Canada's largest domestic and international
airline, the country's flag carrier and a founding member of
Star Alliance, the world's most
comprehensive air transportation network. Air Canada is the only international network
carrier in North America to
receive a Four-Star ranking from the independent U.K. research firm
Skytrax, which in 2021 also named Air Canada as having the Best
Airline Staff in North America,
Best Airline Staff in Canada, Best
Business Class Lounge in North
America, as well as an Excellence award for its handling of
COVID-19. Also in 2021, Air Canada was named Global Traveler's Best
Airline in North America for the
third straight year. In January 2021,
Air Canada received APEX's Diamond Status Certification for the Air
Canada CleanCare+ biosafety program for managing COVID-19, the only
airline in Canada to attain the
highest APEX ranking. Air Canada
has also committed to a net zero emissions goal from all global
operations by 2050. For more information, please visit:
aircanada.com/media, follow Air Canada on Twitter and
LinkedIn, and join Air Canada on Facebook.
Internet: aircanada.com/media
Sign up for Air Canada news: aircanada.com
Media Resources:
Photos
Videos
B-Roll
Articles
Selected Financial Metrics and
Statistics
The financial and operating highlights for Air Canada for the
periods indicated are as follows:
(Canadian dollars in
millions, except per share data or where indicated)
|
First
Quarter
|
Financial
Performance Metrics
|
2022
|
2021
|
$
Change
|
Operating
revenues
|
2,573
|
729
|
1,844
|
Operating
loss
|
(550)
|
(1,049)
|
499
|
Loss before income
taxes
|
(814)
|
(1,387)
|
573
|
Net loss
|
(974)
|
(1,304)
|
330
|
Adjusted pre-tax loss
(1)
|
(740)
|
(1,335)
|
595
|
Operating margin
(%)
|
(21)
|
(144)
|
123
pp(8)
|
EBITDA (excluding
special items) (1)
|
(143)
|
(763)
|
620
|
EBITDA margin
(1) (%)
|
(6)
|
(105)
|
99 pp
|
Unrestricted liquidity
(2)
|
10,162
|
6,582
|
3,580
|
Net cash flows from
(used in) operating activities
|
335
|
(888)
|
1,223
|
Free cash flow
(1)
|
59
|
(1,162)
|
1,221
|
Net debt
(1)
|
7,031
|
6,170
|
861
|
Diluted loss per
share
|
(2.72)
|
(3.90)
|
1.18
|
Operating Statistics
(3)
|
2022
|
2021
|
%
Change
|
Revenue passenger miles
("RPMs") (millions)
|
9,481
|
1,831
|
417.9
|
Available seat miles
("ASMs") (millions)
|
14,297
|
4,211
|
239.5
|
Passenger load factor
%
|
66.3%
|
43.5%
|
22.8 pp
|
Passenger revenue per
RPM ("Yield") (cents)
|
20.2
|
21.6
|
(6.2)
|
Passenger revenue per
ASM ("PRASM") (cents)
|
13.4
|
9.4
|
43.1
|
Operating revenue per
ASM (cents)
|
18.0
|
17.3
|
4.0
|
Operating expense per
ASM ("CASM") (cents)
|
21.8
|
42.2
|
(48.3)
|
Adjusted CASM (cents)
(1)
|
15.6
|
40.4
|
(61.4)
|
Average number of
full-time-equivalent ("FTE") employees (thousands)
(4)
|
27.3
|
16.1
|
69.5
|
Aircraft in operating
fleet at period-end (5)
|
332
|
332
|
-
|
Seats dispatched
(thousands)
|
8,653
|
2,571
|
236.6
|
Aircraft frequencies
(thousands)
|
65.0
|
22.1
|
193.7
|
Average stage length
(miles) (6)
|
1,652
|
1,638
|
0.9
|
Fuel cost per litre
(cents)
|
98.6
|
62.7
|
57.2
|
Fuel litres
(thousands)
|
760,862
|
318,358
|
139.0
|
Revenue passengers
carried (thousands) (7)
|
5,435
|
1,124
|
383.6
|
(1)
|
Adjusted pre-tax
income (loss), EBITDA (excluding special items) (earnings before
interest, taxes, depreciation, and amortization), EBITDA margin,
free cash flow, net debt and adjusted CASM are non-GAAP financial
measures, non-GAAP ratios or supplemental financial measures. Such
measures are not recognized measures for financial statement
presentation under GAAP, do not have standardized meanings, may not
be comparable to similar measures presented by other entities and
should not be considered a substitute for or superior to GAAP
results. Refer to section "Non-GAAP Financial Measures" of this
news release for descriptions of non-GAAP financial measures and to
the tables accompanying this news release for a quantitative
reconciliation of the non-GAAP financial measures, used in this
news release to the most comparable GAAP measure.
|
(2)
|
Unrestricted
liquidity refers to the sum of cash, cash equivalents, short and
long-term investments, and the amounts available under Air Canada's
credit facilities. Unrestricted liquidity, as at March 31, 2022,
consisted of $9,212 million in cash, cash equivalents, short and
long-term investments and $950 million available under undrawn
credit facilities. As at March 31, 2021, unrestricted liquidity
consisted of $6,582 million in cash, cash equivalents, short and
long-term investments.
|
(3)
|
Except for the
reference to average number of FTE employees, operating statistics
in this table include third party carriers operating under capacity
purchase agreements with Air Canada.
|
(4)
|
Reflects FTE
employees at Air Canada and its subsidiaries. Excludes FTE
employees at third party carriers operating under capacity purchase
agreements with Air Canada. As of March 31, 2022, there were 29,346
employees based in Canada.
|
(5)
|
The number of
aircraft in Air Canada's operating fleet at March 31, 2022 and at
December 31, 2021 include aircraft that were grounded due to the
impact of the COVID-19 pandemic.
|
(6)
|
Average stage length
is calculated by dividing the total number of available seat miles
by the total number of seats dispatched.
|
(7)
|
Revenue passengers
are counted on a flight number basis (rather than by
journey/itinerary or by leg) which is consistent with the IATA
definition of revenue passengers carried.
|
(8)
|
"pp" denotes
percentage points and refers to a measure of the arithmetic
difference between two percentages.
|
SOURCE Air Canada