LONDON – On August 2, the Canadian flag carrier, Air Canada, has published its second quarter (Q2) 2022 financial results.
Air Canada Q2 Results
Firstly diving into Air Canada’s latest financial publishings certainly show a very strong return for the carrier, starting off with achieving passenger revenues of $3.441 billion, which is approximately eight times higher than what the carrier saw back in Q2 2021.
Their operating revenues stood at $3.981 billion, yet again another increase, this time approximately five times higher than 2021.
However, in order to keep up with the pent-up demand of air travel returning and even increasing from pre-pandemic 2019 levels, the carrier has had operating expenses of $4.234 billion – this is an increase of $2.264 billion compared to what the carrier had spent during the same period in 2021.
The company’s CASM (Cost per Available Seat Mile) had decreased from 49.3 cents in 2021 to 20.8 cents, and their adjusted CASM fell from 41.5 cents in 2021 to now sitting at 13.1 cents. In terms of their EBITDA (excluding special items), Air Canada landed at $154 million – this is certainly better than the negative EBITDA that the company had in 2021 of $656 million.
Unfortunately its not all singing and dancing quite yet for Air Canada, as the company had an operating loss of $253 million. However, this is definitely a much better position than their operating loss of $1.133 billion that they saw during the same period in 2021.
Not only this but the company also had a net loss of $386 million or $1.60 per diluted share, but again this is a much better standing than 2021’s net loss of $1.165 billion or $3.31 per diluted share.
In terms of their fleet changes for this quarter, Air Canada had finalised an order for two brand-new Boeing 777 Freighters which are pencilled for delivery in 2024. This acquisition help bolster their operations in their Air Canada Cargo division, on-top of the recently converted Boeing 767 Freighters that they have began to operate.
Commenting on their latest results, Air Canada’s President and Chief Executive Officer, Michael Rousseau, has said, “The past three months have been very challenging for our company, our employees, and customers from an operational perspective. The path to recovery from any serious event is rarely straight and easy.”
“I thank our employees for their incredibly hard work, demonstrated professionalism and commitment as we safely transported over 9.1 million customers in the quarter, nearly 8 million more than the second quarter of 2021 or about 70% of total customers carried in the full year 2021.”
“The industry worldwide is facing unprecedented conditions as it emerges from pandemic-related restrictions. The situation is particularly challenging in Canada, where we have gone from a near two-year shutdown of air travel to rebuilding our capacity back to close to 80 per cent of 2019 levels in just a few months.”
“Despite meticulous planning and projecting participants involved in the air transport system are facing significant pressure in restarting. We continue to work together to restore the travel experience to expectations and are encouraged by recent improvements.”
It is certainly evident that Air Canada has significantly improved since the pandemic-written years of 2020 and 2021, however, they still have some way to go in order to achieve needed profitability, which we are certain will come into place as the remainder of this year continues to show a strong demand for air travel.