Good Morning All:
It is reported via Canada News Wire that "Big Red" has had a very good third quarter.
In addition it was announced that Air Canada will order 2 B-777-300 and 8 Embraer aircraft will be replaced with 3 Airbus 321 aircraft and 2 Airbus 320 aircraft.
For the full media release use the link below.
Air Canada Reports Record Third Quarter 2014 Results - Nov 6, 2014
Highest Adjusted Net Income and Operating Income Results of any Quarter in Air Canada's 77-year History
Adjusted net income(1) of $457 million versus adjusted net income of $365 million in the third quarter of 2013, an improvement of $92 million, representing a 25.2 per cent increase, or $0.26 per diluted share
Operating income of $526 million versus operating income of $416 million in the third quarter of 2013, an increase of $110 million or 26.4 per cent
MONTREAL, Nov. 6, 2014 /CNW Telbec/ - Air Canada today reported third quarter adjusted net income of $457 million or $1.55 per diluted share compared to adjusted net income of $365 million or $1.29 per diluted share in the third quarter of 2013, an improvement of $92 million or $0.26 per diluted share. EBITDAR(1) (earnings before interest, taxes, depreciation, amortization and aircraft rent) amounted to $749 million compared to EBITDAR of $626 million in the third quarter of 2013, an improvement of $123 million. On a GAAP basis, Air Canada reported operating income of $526 million, an increase of $110 million from the same quarter in 2013. The airline recorded net income of $323 million or $1.10 per diluted share in the third quarter of 2014 compared to a net income of $299 million or $1.05 per diluted share in the third quarter of 2013, an improvement of $24 million or $0.05 per diluted share.
"I am extremely pleased to report Air Canada's best financial performance of any quarter in the Corporation's 77-year history, surpassing previous records for adjusted net income, operating income and EBITDAR," said Calin Rovinescu, President and Chief Executive Officer.
"Operating margin was 13.8 per cent, an increase of 1.8 percentage points over the previous year's quarter, underscoring the effectiveness of our business transformation strategy. The recent tailwind provided by a reduction in fuel prices is a welcome development but we remain focused on further cost reductions to achieve sustainable profitability in this highly competitive industry environment. While foreign exchange rates and fuel prices have fluctuated since 2012, Air Canada remains on track to achieve the savings targeted when we announced our objective at our June 2013 Investors' Day to achieve a 15 per cent CASM reduction from our 2012 baseline costs.
"The ratification of a ten-year agreement with our pilots provides a strong foundation to support long term profitable growth. With this additional stability and competitiveness, we are able to accelerate our fleet initiatives and capital programs with the acquisition of an additional two Boeing 777-300ER aircraft. This will bring our Boeing 777 fleet to a total of 25 aircraft, all of which will be reconfigured to our new international cabin product standard now featured on the 787 Dreamliner aircraft entering our international fleet.
Also, this tidbit:
In addition, in 2015, Air Canada expects to replace eight of its Embraer 190 aircraft with three Airbus A321 and two Airbus A320 aircraft. In order to better match capacity with demand for the 2015 summer season, the airline plans to take delivery of these five replacement aircraft prior to the start of the summer season while the eight Embraer 190 aircraft are only expected to exit the mainline fleet in the latter part of 2015. The overlap of this interim lift is forecasted to account for approximately 30 per cent of the projected domestic capacity growth in 2015.