| Imagery Source: Wikimedia Commons / P199 |
| Information Source: Air Canada |
- Operating revenues of $5.196 billion for the first quarter of 2025, 1% lower year over year.
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- Operating loss of $108 million and adjusted EBITDA* of $387 million with adjusted EBITDA margin* of 7.4%.
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- Cash flow from operating activities of $1.526 billion and free cash flow* of $831 million, a year-over-year decrease of $66 million and $225 million, respectively.
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- Leverage ratio* of 1.3 at March 31, 2025, compared to 1.4 at the end of 2024.
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- Purchased and cancelled over 15 million shares in the quarter, completing the normal course issuer bid announced in November 2024.
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- Announced intention to launch substantial issuer bid (SIB) to purchase and cancel up to $500 million of shares.
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| Air Canada today reported its first quarter 2025 financial results. |
| “Our first quarter 2025 results show Air Canada is effectively managing through a turbulent period. Total operating revenues of nearly $5.2 billion were stable year-over-year on similar capacity. Our revenue diversification strategy remains sound; sixth freedom revenues grew, and Air Canada Cargo and Air Canada Vacations delivered solid results in the period. We recorded adjusted EBITDA of $387 million. Winter is always a challenging test, yet in the quarter we made progress in on-time performance, baggage delivery and customer satisfaction. Most importantly, we carried our nearly 10.8 million passengers safely, and I thank all employees for their hard work taking care of our customers,” said Michael Rousseau, President and Chief Executive Officer of Air Canada. |
| “In the quarter, we reported strong cash from operations and free cash flow. Our leverage ratio decreased from the fourth quarter of 2024. Although advance ticket sales grew in line with our expectations in the period, we anticipate market conditions will remain unsteady with an uncertain economic outlook. In response, we are prudently moderating our expectations and concentrating on controllable factors such as cost management and strategic capacity adjustments to ensure strong performance in key financial metrics. |
| “Our results demonstrate that we have a solid and diversified commercial foundation, a disciplined capital allocation strategy, and a skilled and dedicated team. We are encouraged that despite some shifts in certain markets, overall demand trends remain steady. In the quarter, we purchased and cancelled over 15 million shares to complete the normal course issuer bid program announced last November. In our ongoing drive to create value, we are pleased to announce today our intention to launch a substantial issuer bid to purchase and cancel up to $500 million worth of shares. The SIB underscores our commitment, as we advance toward our 2028 financial targets, to creating significant value for shareholders and succeeding on a sustained, long-term basis for the benefit of all stakeholders,” said Mr. Rousseau. |
| *Adjusted CASM, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted EBITDA margin, leverage ratio, net debt, adjusted pre-tax income (loss), adjusted net income (loss), adjusted earnings (loss) per share, and free cash flow are referred to in this news release. Such measures are non-GAAP financial measures, non-GAAP ratios, or supplementary financial measures, are not recognised measures for financial statement presentation under GAAP, do not have standardised 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 these measures and reconciliation of Air Canada's non-GAAP measures used in this news release to the most comparable GAAP financial measure. |
| The following is an overview of Air Canada’s results of operations and financial position for the first quarter 2025 compared to the same period in 2024. |
| First Quarter 2025 Financial Results |
- Operating revenues of $5.196 billion decreased $30 million or 1% on an operated capacity decline of 0.4% year over year.
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- Operating expenses of $5.304 billion increased $89 million or 2%, driven by depreciation, ground package costs and the impact of an unfavourable foreign exchange variance year over year. Lower fuel prices year over year partially offset the increase.
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- Operating loss of $108 million compared to operating income of $11 million in the same period in 2024.
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- Adjusted EBITDA of $387 million, with an adjusted EBITDA margin of 7.4%, decreased $66 million and 1.3 percentage points, respectively.
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- Adjusted pre-tax loss* of $215 million, compared to an adjusted pre-tax loss of $94 million in the same period in 2024.
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- Net loss of $102 million and diluted loss per share of $0.40 compared to a net loss of $81 million and diluted loss per share of $0.22.
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- Adjusted net loss* of $150 million and adjusted loss per diluted share of $0.45 compared to an adjusted net loss of $96 million and adjusted loss per diluted share of $0.27.
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- Adjusted CASM* of 15.27 cents compared to 14.76 cents, an increase of 3.5%.
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- Net cash flows from operating activities of $1,526 million decreased by $66 million.
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- Free cash flow* of $831 million decreased by $225 million.
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| Outlook |
| For the second quarter of 2025, Air Canada plans to increase its ASM capacity between 2% and 2.5% from the same quarter in 2024. |
| For the full year 2025, Air Canada is updating some of its guidance and major assumptions to account for the recent trends in the commercial environment and fuel price expectations. The updated full year 2025 guidance is as follows: |
| Metric |
Prior 2025 Guidance |
Updated 2025 Guidance |
| Adjusted EBITDA |
$3.4 billion to $3.8 billion |
$3.2 billion to $3.6 billion |
| ASM capacity |
3% to 5% increase versus 2024 |
1% to 3% increase versus 2024 |
| Adjusted CASM |
14.25 ¢ to 14.50 ¢ |
14.25 ¢ to 14.50 ¢ |
| Free cash flow |
Break even +/- $200 million |
Break even +/- $200 million |
Major Assumptions |
| Air Canada made assumptions in providing its guidance—including a marginal increase of Canadian GDP growth for 2025 (previously moderate growth). Air Canada continues to assume that the Canadian dollar will trade, on average, at C$1.40 per U.S. dollar for the full year 2025. Air Canada also assumes that the price of jet fuel will average C$0.88 (previously C$0.95) per litre for the full year 2025. |
| Air Canada’s guidance constitutes forward-looking information within the meaning of applicable securities laws and is subject to important risks and uncertainties, including about statements or actions by governments and uncertainty relating to the imposition of (or threats to impose) tariffs on Canadian exports or imports and their resulting impacts on the Canadian, North American and global economies and travel demand. Please see the discussion below under Caution Regarding Forward-looking Information. |
| For the full document, click the link below |
| Air Canada |
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