Air Canada shows recovery during the first quarter 2022

Air Canada released its financial results for the first quarter of 2022, presenting a substantial year-on-year improvement during this period, continuing its solid recovery strategy.

“This promotion is a testament to our employees, and I thank them for their hard work taking care of our customers through more than two years of a global pandemic. Now, our employees are demonstrating this same level of determination, commitment and passion in executing our recovery strategy," said Michael Rousseau, Air Canada President and CEO.

“The year started with weakness caused by the Omicron variant and travel restrictions. However, we recovered quickly in March, with passenger volumes exceeding strong December levels and passenger ticket sales in March 2022 above 90% of March 2019 levels, an indicator that the results of the second and third quarter of 2022 will be much stronger. For the quarter, Air Canada posted operating income of $2.573 billion, more than triple the same quarter last year. This was accompanied by strict cost discipline that reduced Adjusted CASM* by more than 6% from the fourth quarter of 2021. Quarterly EBITDA*, while negative $143 million,

“In anticipation of our recovery, Air Canada has stayed the course with key long-term projects to grow and diversify revenue and reduce costs. One of these programs is the expansion of Air Canada Cargo, whose quarterly revenue increased 42% to $398 million from the first quarter of 2021, and which has now been further expanded with the addition of two new Boeing freighters. 767-300 to be delivered in 2022. The renegotiation of major engine maintenance contracts, completed in the quarter, will also deliver savings over the remaining life of the contracts. Aeroplan's air exchange bookings in the quarter exceeded those of the same quarter of 2019 by 19%. The relaunched program recorded the largest acquisitions and swaps of new members in a quarter,

“Air Canada is rapidly adapting to the post-pandemic world. We are doing our part by contributing to the travel of Ukrainians to Canada, with a significant donation of 100 million Aeroplan points. We have also made progress on our ESG targets in the quarter by announcing an order for 26 fuel-efficient Airbus A321XLR aircraft, which we have now increased to 30 aircraft. In addition, we have recently entered into a long-term agreement with International Aero Engines, LLC (Pratt & Whitney) for the selection of PW1100G-JM engines, replacement 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, especially when it comes to customer experience. Given the demand for travel, the demonstrated loyalty of our customers, and the expected lifting of government travel-related restrictions, Air Canada expects its recovery to gain momentum through the remainder of 2022 and beyond."