The following is a summary of the Air Canada (ACDVF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Air Canada had operating revenue of over $5.2 billion in Q1, increasing by almost $340 million year-over-year.
Adjusted EBITDA was $453 million, up $42 million.
The company turned a profit of $11 million in operating income, a $28 million improvement from the prior year.The company's leverage ratio improved to 0.9 at the end of Q1, from 1.1 at the end of 2023 and 5.1 at the end of 2022.
Their liquidity position at the quarter-end stood at $10 billion while generating free cash flow of over $1 billion for Q1, up from $987 million year over year.
Business Progress:
Air Canada reported a system-wide on-time arrival rate that increased 13 percentage points from Q1 2023 suggesting operational efficiency.
Passenger revenues increased by 9% year-over-year to over $4.44 billion.
There were strong performances in the domestic and Pacific markets, with revenues from the latter almost up by 37%.
The company plans to add more aircraft to their fleet, diversify their international network, and strengthen its balance sheet.
Despite engine issues with the A220, the company remains optimistic about its long-term value and plan to negotiate a deal to add more aircraft to its collection.
More details: AIR CANADA IR
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