Air Canada has provided preliminary financial results for the second quarter of 2024 and updated its 2024 financial and capacity guidance.
The airline says it continues to see a healthy demand environment. The Q2 operating revenues – still preliminary at this point -- would represent a record for a second quarter, with load factors remaining above historical averages.
However, Air Canada has lowered its EBITDA guidance range and capacity plans for 2024, adjustments “largely driven by the lower yield environment, lower-than-expected load factors for the second half of the year and competitive pressures in international markets.” The projections reflects the airline’s assumptions, including those relating to the price of jet fuel and a weakened Canadian dollar against the US dollar.
Q2 2024 preliminary results
· Operating revenues of about $5.5 billion, on 6.5% increased operated capacity year-over-year, as compared to about $5.4 billion in Q2 2023.
· Operating income of $466 million, with an operating margin of 8.4%, as compared to $802 million in Q2 2023.
· Adjusted EBITDA of $914 million, as compared to about $1.2 billion in Q2 2023.
Air Canada
Air Canada's interim unaudited condensed consolidated financial statements for the second quarter of 2024 are not yet complete and results for second quarter 2024 may vary from these preliminary estimates upon completion of closing procedures and finalization of the interim unaudited condensed consolidated financial statements.
2024 Outlook
| Metric | Prior FY 2024 Guidance | Updated FY 2024 Guidance |
| ASM capacity | 6 to 8% increase versus 2023 | 5.5 to 6.5% increase versus
2023 |
| Adjusted CASM* | 2.5 to 4.5% increase versus
2023 | 2.5 to 3.5% increase versus
2023 |
| Adjusted EBITDA* | $3.7 to $4.2 billion | $3.1 to $3.4 billion |
Air Canada has updated its full year 2024 guidance as follows: The updated 2024 capacity guidance range accounts for sustained supply chain pressures, evolving market conditions and ongoing geopolitical issues. The updated 2024 adjusted CASM range includes the impact of the revised ASM capacity guidance range.
Air Canada says it is effectively managing costs through productivity, cost reductions and other cost discipline initiatives. The company will provide additional details when it releases its second quarter 2024 results on Wednesday, August 7.
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