Q2 2024 Air Canada Earnings Call Transcript
Key Points
- Air Canada (ACDVF) achieved second quarter operating revenues of $5.5 billion, reflecting a 2% year-over-year increase.
- The company generated $1.5 billion in free cash flow on a year-to-date basis.
- On-time performance improved by 10 points, despite operating 4% more flights and carrying 3% more passengers compared to the same quarter last year.
- Air Canada (ACDVF) won more awards than any other Canadian carrier at the 24 Skytrax World Airline Awards, including being rated among the top 30 airlines globally.
- The Pacific market continues to perform well, with new routes to Seoul and Osaka showing strong performance shortly after launch.
- Adjusted EBITDA margin was 16.6%, which did not meet internal expectations.
- Passenger revenue per available seat mile (PRASM) declined by 4.4% year-over-year.
- The system load factor declined by about 2 percentage points to 85.7%, compared to the same period last year.
- Operating expenses increased by 9% year-over-year, driven by higher fuel, labor, and maintenance costs.
- The Atlantic performance was impacted by weak point-of-sale in Europe and competitive pressures on the Canadian point-of-sale.
Hello and welcome to the Air Canada second quarter 2024 results conference call. (Operator Instructions) As a reminder, this conference 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, Bonjour, (spoken in foreign language). Welcome and thank you for attending our second quarter 2024 earnings call. Joining us this morning are Michael 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.
Mike will begin this call with an overview of the quarter. Mark will speak on revenue, network updates and trends and John will provide comments about our financial performance before turning it back to Mike. We will then take questions from equity analysts.
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