Q3 2024 Air Canada Earnings Call Transcript
Key Points
- Air Canada (ACDVF) reported solid third-quarter results with operating revenues of $6.1 billion and an adjusted EBITDA of $1.5 billion, surpassing market expectations.
- The company successfully reached a new four-year collective agreement with its pilot group, avoiding significant disruptions and maintaining revenue impact.
- Air Canada's cargo segment showed strong performance with an 18% year-over-year revenue growth, driven by higher yields and volumes in the Pacific market.
- The company announced a new share buyback program, aiming to reverse some of the dilution from measures taken during the COVID-19 pandemic.
- Air Canada (ACDVF) continues to see healthy demand across its markets, with stable load factors and encouraging signals for yield improvement in upcoming quarters.
- Passenger revenues declined by 4% from the same quarter last year, with decreases in yield and system load factor leading to a 7% decline in PRASM.
- The pilot contract negotiations led to softer booking volumes, impacting revenues particularly in September and continuing into October.
- Air Canada (ACDVF) faces ongoing supply chain pressures, aircraft availability issues, and geopolitical conditions affecting capacity growth.
- The company anticipates more intense unit cost pressure in 2025 due to regulatory changes, higher airport infrastructure fees, and maintenance cost inflation.
- A one-time pension past service cost charge of about $500 million is expected in the fourth quarter, impacting financials despite being funded from the planned surplus.
Hello. Bonjour. Welcome to Air Canada's third-quarter 2024 results conference call. (Operator Instructions)
As a reminder, today's call is being recorded. I would now like to turn the conference over to Valerie Durand, Head of Investor Relations and Corporate Sustainability at Air Canada. You may begin.
Thank you, Sarah. Hello. (spoken in French)
Welcome, and thank you for attending our third-quarter 2024 earnings call. Joining us this morning are Mike Rousseau, our President and CEO; Mark Galardo, our Executive Vice President of Revenue and Network Planning and President of Cargo; and John Di Bert, our Executive Vice President and CFO. Other executive team members are with us as well.
After our prepared remarks, we will take questions from equity analysts. I remind you that today's comments and discussion may contain forward-looking information about Air Canada's outlook, objectives, and strategies that are based on assumptions and subject to risks
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