Air Canada completed its inaugural Montreal to Amsterdam flights today, with a Boeing 787 Dreamliner using sustainable aviation fuel.
Air Canada completed its inaugural Montreal to Amsterdam flights today, with a Boeing 787 Dreamliner using sustainable aviation fuel. (CNW Group/Air Canada)
Coinciding with the launch of Air Canada’s second route from Amsterdam to Canada, the airline is further advancing initiatives in its Climate Action Plan by expanding its partnership with Sustainable Aviation Fuel (SAF) producer Neste in Europe to now incorporate Neste MY Sustainable Aviation FuelTM in some of its flights at Amsterdam Schiphol Airport. Use of SAF could reduce greenhouse gas (GHG) emissions by up to 80%* over the fuel’s life cycle, compared to use of conventional jet fuel. This reduction is calculated based on a full lifecycle assessment.
Air Canada’s flights between Montreal and Amsterdam are operated on a Boeing 787 Dreamliner aircraft featuring three classes of service. The five times weekly flights for Summer 2023 complement Air Canada’s year-round flights between Toronto and Amsterdam. With up to double daily flights between Canada and Amsterdam from two of Air Canada’s global hubs, customers on both sides of the Atlantic have convenient choices to visit and explore each other’s continents.
* When used in neat form (i.e. unblended) and calculated with established life cycle assessment (LCA) methodologies, such as CORSIA methodology.
With the arrival of two flights in Europe on June 2, Air Canada has inaugurated two strategic nonstop routes from its Montreal global hub to Europe.
Air Canada Inaugurates International Flights from Montreal to Toulouse and Copenhagen. (CNW Group/Air Canada)
Air Canada’s nonstop, year-round service to Toulouse is the airline’s fourth destination in France and marks the only year-round service between North America and southwestern France, connecting two global aerospace centres, as well as two dynamic francophone cities.
Additionally, Air Canada’s seasonal services from Montreal to Copenhagen complement its year-round services to the Danish capital from Toronto.
Flights to Toulouse are operated on an Airbus A330 aircraft featuring three classes of service.
Air Canada announced its newest Air Canada Café, in collaboration with Aspire, Swissport’s premium lounge brand. Beginning June 1, eligible Air Canada customers departing from Toronto’sdowntown airport will have dedicated access to the only airline lounge at Billy Bishop Toronto City Airport (YTZ) to enjoy elevated comfort and convenience before they fly.
(CNW Group/Air Canada)
The new Aspire | Air Canada Café marks the 27thlounge in Air Canada’s lounge network and the sixth Canadian location for Aspire. It’s a 133-seat modern respite at Billy Bishop Toronto City Airport’s domestic departures terminal. Quiet workspaces, a private meeting room and premium food and drinks to stay or go are among the complimentary amenities in the café-style executive lounge.
The Aspire | Air Canada Café is available to Air Canada customers who are Aeroplan 50K, 75K, or Aeroplan Super Elite Status members, Star Alliance Gold members, and Aeroplan premium co-brand cardholders, as well as travellers connecting to an Air Canada business class ticket. Features include:
Premium Food and Beverage Offerings
Self-serve hot and cold buffet curated by local chefs with fresh baked breads and pastries
Hot and cold grab-n’-go selections
Central bar with complimentary beverages and premium for-purchase beverages
Amenities and Space
4,271-square-foot (367-square-metre) premium space for work or relaxation
Meeting room to book for collaborative or quiet co-working
Additional workspace for taking calls
Wireless chargers at almost every seat
Super-fast and reliable Wi-Fi
TVs broadcasting news and sports
Air Canada offers convenient and comprehensive service for customers travelling between Toronto and Montreal with up to eight daily departures to Montreal (YUL) from Billy Bishop Toronto City Airport (YTZ), and up to 17 additional departures from Toronto Pearson International Airport (YYZ).
Air Canada and Chorus Aviation Inc., parent company of Jazz Aviation LP, are providing comment on Air Canada’s arrangement for additional flying capacity with another airline for up to six De Havilland Canada DHC-8 aircraft.
“Jazz is our long-term Air Canada Express partner, and we are working together to increase flying activity within the framework of our existing CPA given the current, industry wide pilot situation. As these efforts continue, and to help meet the needs and expectations of the travelling public, Air Canada has entered into a bridging arrangement with another airline to provide additional regional capacity on select routes in eastern Canada,” said Mr. Michael Rousseau, President and Chief Executive Officer of Air Canada.
“Chorus understands that Air Canada is increasing capacity to meet travel demand and that the addition of these aircraft is a bridging solution. We confirm that this agreement does not impact Chorus financially,” said Mr. Colin Copp, President and Chief Executive Officer of Chorus.
Air Canada today announced the strategic expansion of its winter sun network that includes four new routes from Toronto and Montreal to Monterrey* and Los Cabos* in Mexico and, La Romana and Fort-de-France in the Caribbean. The airline is also deploying a substantial increase in capacity from its Vancouver hub to sought after sun destinations such as Mexico, Miami, Phoenix, Las Vegas and San Diego, and additional flights from coast to coast to popular winter vacation destinations in Florida, Mexico and the Caribbean.
New flights from Toronto to Monterrey and Fort-de-France
New flights from Montreal to La Romana and Los Cabos
Overall 8% more sun capacity versus 2019 pre-pandemic schedule
Up to 50% more capacity from Vancouver to Mexico, Miami, Phoenix, Las Vegas
Air Canada’s winter sun schedule anticipates an 11 per cent capacity increase from 2022 and plans to operate eight per cent more than its 2019 pre-pandemic sun schedule. Key highlights include up to 20 routes from across Canada to Florida, increased flights from across Canada to Cancun, Montreal to Palm Beach, Toronto to Fort Myers, and from Vancouver to Miami, Cancun, Los Cabos, Puerto Vallarta, Las Vegas and Phoenix.
Air Canada today announced the strategic expansion of its winter sun network that includes four new routes from Toronto and Montreal to Monterrey and Los Cabos in Mexico and, La Romana and Fort-de-France in the Caribbean. (CNW Group/Air Canada)
New route details:
Toronto – Monterrey, Mexico (year-round)*
Air Canada becomes the only Canadian airline to offer flights between Canada and Monterrey, Mexico’s third largest metropolis that is home to business headquarters and commercial interests as well as historical culture, art and architectural attractions. Flights have been timed for convenient connections between Monterrey and Europethrough Air Canada’s Toronto global hub.
Flight
From
To
Days of Week
Departure Time
Arrival Time
Flight Begins
AC1359
Toronto (YYZ)
Monterrey (MTY)
Mon, Wed, Fri, Sun
18:00
21:35
Oct. 29
AC1358
Monterrey (MTY)
Toronto (YYZ)
Mon, Tue, Thur, Sat
10:05
14:55
Oct. 30
Toronto-Fort-de-France, Martinique (seasonal)
Air Canada is the leading carrier between Canada and the French Caribbean, featuring new flights from its Torontohub this winter complementing its year-round flights from Montreal. With 7 weekly flights from Canada to Martinique this winter peak, Air Canada has also optimized connections to and from its Toronto and Montrealhubs, bringing more people to discover Martinique.
Flight
From
To
Days of Week
Departure Time
Arrival Time
Flight Begins
AC950
Toronto(YYZ)
Fort-de-France (FDF)
Sat
08:15
14:20
Dec. 16
AC951
Fort-de-France (FDF)
Toronto (YYZ)
Sat
15:25
20:05
Dec. 16
Montreal- Los Cabos, Mexico (seasonal)*
New flights from Montreal complements services from Toronto and Vancouver to this popular Mexican leisure destination.
Flight
From
To
Days of Week
Departure Time
Arrival Time
Flight Begins
AC975
Montreal (YUL)
Los Cabos (SJD)
Fri
08:00
12:40
Dec. 1
AC974
Los Cabos (SJD)
Montreal (YUL)
Fri
13:40
21:05
Dec. 1
Montreal-La Romana (seasonal)
Flight
From
To
Days of Week
Departure Time
Arrival Time
Flight Begins
AC1756
Montreal (YUL)
La Romana (LRM)
Sun
09:10
15:10
Dec. 17
AC1757
La Romana (LRM)
Montreal (YUL)
Sun
16:10
20:05
Dec. 17
Increased capacity from Vancouver year-over-year is as follows:
Route
Increase from 2022
Vancouver-Las Vegas
14 weekly flights (up from 7)
Vancouver-Phoenix
14 weekly flights (up from 7)
Vancouver-Puerto Vallarta
7 weekly flights (up from 3)
Vancouver-Cancun
7 weekly flights (up from 4)
Vancouver-Miami
6 weekly flights (up from 3)
Vancouver-Los Cabos
5 weekly flights (up from 3)
Vancouver-San Diego
+110% capacity increase with larger aircraft
Increased capacity from across Canada on key routes year-over-year are as follows:
Air Canada and Air Canada Cargo on May 23 operated its first commercial flight into Punta Cana, Dominican Republic, with its Boeing 767 freighter. The service will be operated once per week.
Air Canada Cargo’s flight to Punta Cana is the latest addition to its worldwide freighter network, following recently launched freighter services to San José, Basel, Liege, Dallas, Atlanta and Bogota.
Air Canada today reported a strong operational performance to begin the summer travel season.
Approximately 540,000 customers flew with the carrier between May 19 and 22, the May long weekend in Canada that traditionally marks the start of the summer travel season.
“I am very pleased by the performance of our airline during the first long weekend of the summer. We carried heavy loads, with 540,000 customers and our mainline aircraft 95% full on Friday, yet we achieved a flight completion ratio of 98.7% and a solid on-time performance that reached 90 per cent Sunday morning. Although system-wide weather was favourable, we did face several challenges, including wildfires in Western Canada, weather disruptions in the southern U.S. and even a volcano in Mexico that all affected flights,” said Kevin O’Connor, Senior Vice President, Global Airports and Operational Control at Air Canada.
“I thank all our employees for their hard work and dedication to serving our customers and transporting them safely. I also commend our industry partners, upon whom we depend for the air travel system to operate smoothly. While sustained high passenger loads of the season are yet to fully arrive, our success during the first holiday weekend gives us added confidence that we are ready to perform well this summer.”
Air Canada Airbus A320-214 C-FZQS (msn 2145) LAX (Michael B. Ing). Image: 949759.
Air Canada has announced it will begin nonstop, year-round service between Toronto and Yellowknife in December. The new, three-times weekly service will provide convenient connections between eastern Canada and the capital of the Northwest Territories. Customers will also be able to seamlessly connect onward from Yellowknife on Air Canada’s interline partner, Canadian North.
(CNW Group/Air Canada)
Service between Toronto and Yellowknife will begin December 1, 2023, operated using Canadian-made Airbus A220 aircraft. It will be configured with 137 seats in a Business and Economy cabin, with onboard Wi-Fi and seatback entertainment systems featuring hundreds of hours of content and live TV at every seat. Customers will be able to earn and redeem Aeroplan points and eligible customers will enjoy premium services where available, including priority boarding and baggage handling, and Maple Leaf Lounge access in Toronto.
Flight
Departs
Arrives
Days of the Week
AC1169
Toronto 21:00
Yellowknife 23:54
Tuesday, Friday, Sunday
AC1168
Yellowknife 00:50
Toronto 7:20
Monday, Wednesday, Saturday
The new service will complement Air Canada’s existing twice daily service between Yellowknife and Vancouver and daily service between Yellowknife and Edmonton. Customers connecting for travel beyond Yellowknife can take advantage of Air Canada’s bilateral interline agreement with Canadian North, which allows travel on a single, through-checked ticket that includes baggage transfer. Destinations available via Canadian North include Cambridge Bay, Fort Simpson, Hay River, Gjoa Haven, Taoloyoak and Inuvik.
Top Copyright Photo: Air Canada Airbus A320-214 C-FZQS (msn 2145) LAX (Michael B. Ing). Image: 949759.
The Executive Board of the Air Line Pilots Association, Int’l (ALPA) approved by acclamation the merger between the Air Canada Pilots Association (ACPA) and ALPA, the world’s largest pilots union. Following the vote, the presidents of both organizations signed the merger agreement. Air Canada now becomes ALPA’s 40th pilot group, growing the Association to more than 73,000 members.
The merger agreement goes into effect immediately, and all representation rights transfer from ACPA to ALPA with notification to the Canada Industrial Relations Board. The two sides reached a merger agreement in principle in March, and Air Canada pilots voted overwhelmingly to ratify the deal on May 1.
Air Canada employs more than 4,500 pilots who fly passengers and cargo around the world on Air Canada and Air Canada Rouge, with headquarters near Toronto’s Pearson Airport and pilot bases in Montreal, Toronto, Vancouver, and Winnipeg.
Air Canada has announced that one of its Airbus A330 aircraft has been outfitted with special diagnostics sensors in partnership with In-Service Aircraft for a Global Observing System (IAGOS), an international non-profit organization that utilizes commercial aircraft as a global observation platform of climate change and air quality. This collaboration will allow IAGOS to collect valuable worldwide data on climate parameters, which will be used by the international scientific community as well as forecasting services like the Atmosphere Service of Copernicus, for essential research on climate change and air quality on a global scale.
(CNW Group/Air Canada)
As part of the partnership, Air Canada has installed IAGOS’s state-of-the-art climate research monitoring devices on Fin 939, one of its A330-300 widebody aircraft. The device will measure a range of parameters, including ozone, water vapour, greenhouse gases, reactive gases, aerosols, clouds, etc. during various stages of flight, including take-off, cruising altitude and landing.
The A330, one of only two aircraft types approved for the IAGOS systems along with the A340, flies a mix of trans-Atlantic and trans-continental flights for Air Canada, providing key data for IAGOS.
The IAGOS device is a compact system featuring measuring probes which are permanently installed on the aircraft, near the flight deck. After each flight, the measurement data is automatically transmitted to the central database of the CNRS (Centre National de la Recherche Scientifique) research centre in Toulouse, France.
According to IAGOS, commercial aircraft provide an ideal platform for gathering trace gas measurements, as they can efficiently measure at high altitudes where collecting samples is otherwise challenging. IAGOS is working with airlines worldwide and this will allow for the validation of global climate models and provide near real-time data in an open-source manner to researchers around the world. The research findings are freely accessible and currently utilized by approximately 300 global organizations.
Air Canada has set an ambitious goal of net-zero greenhouse gas emissions (GHG) throughout its global operations by 2050. To reach this, Air Canada has set absolute midterm GHG net reduction targets by 2030 in its air and ground operations compared to its 2019 baseline and has committed to investing $50 Million in Sustainable Aviation Fuels (SAF), and carbon reductions and removals research and development.
Air Canada and flydubai today announced a new partnership to give customers flying between Canada, the Middle East, East Africa, Indian Subcontinent and Southern Asia more convenient travel options.
Pending final regulatory approval, Air Canada’s marketing code will be placed on nine routes operated from Dubai by flydubai, giving customers the ability to travel to these markets with the issuance of a single ticket. The routes include the Middle Eastern cities of Medina, Dammam, Bahrain, Jeddah, and Muscat, as well as flights to Colombo, and Karachi on the Indian Subcontinent.
Additionally, through an interline arrangement, customers will be able to seamlessly connect in Dubai to more than 60 destinations that flydubai flies to in the Middle East, East Africa and Southern Asia – including Kathmandu, Djibouti and the Maldives. Of these destinations, more than 30 are unique to flydubai and not flown by other partners of Air Canada.
The airlines also plan on further improving the connection process in Dubai, and are working toward introducing expanded features and benefits for one another’s loyalty programme members to be announced later this year.
Air Canada Boeing 787-9 Dreamliner C-FRTU (msn 37183) LAX (Michael B. Ing). Image: 960496.
Air Canada today reported its first quarter 2023 financial results.
“Air Canada’s impressive first quarter performance reflects the strength of our brand, the very strong demand environment across all markets and the effective execution of our strategic plan. When compared to the same quarter in 2022, passenger revenues more than doubled and hit a first quarter record of close to $4.1 billion, supported by our diversified network and our strong international franchise. Adjusted EBITDA surged by $554 million to $411 million, and our adjusted CASM* fell nearly seven per cent from a year ago,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.
“Our first quarter financial results exceeded both internal and external expectations and we expect demand to persist, supported by strong advance bookings for the remainder of the year. For this reason, as well as lower-than-expected fuel costs, we increased our 2023 adjusted EBITDA guidance last week. I thank all employees for their continued focus on improving all aspects of our company through effective and positive teamwork, and our customers for their loyalty.
*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 recognized measures for financial statement presentation under GAAP, do not have standardized 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 for a reconciliation of Air Canada non-GAAP measures used in this news release to the most comparable GAAP financial measure.
“All areas of the business contributed meaningfully during the quarter. Air Canada Cargo is expanding its network and fleet, Aeroplan is gaining more members and gross billings have increased 50% when compared to the first quarter of 2022, and Air Canada Vacations produced remarkable results. System yields improved approximately 9 per cent compared to the first quarter of 2022. We achieved a strong free cash flow* of nearly $1 billion. This will allow us to continue investing in our future, including by further deleveraging our balance sheet,” said Mr. Rousseau.
First Quarter 2023 Financial Results
First quarter operating revenues of $4.887 billion increased $2.314 billion from the same quarter in 2022, primarily from higher passenger revenues due to increased travel demand. Compared to the first quarter of 2019, operating revenues increased about 10 per cent. Operated capacity increased about 53 per cent from the first quarter of 2022 (about 84 per cent of first quarter 2019 ASMs), in line with the projection provided in Air Canada’s February 17, 2023 news release.
Operating expenses of $4.904 billion increased $1.781 billion or 57 per cent from the first quarter of 2022. The increase included the impact of the year-over-year capacity increase, an increase of about 83 per cent in passengers carried and an approximate 30 per cent increase in jet fuel prices.
Operating loss of $17 million, improved from an operating loss of $550 million in the first quarter of 2022.
Net income of $4 million, increased $978 million from the first quarter of 2022. Diluted loss per share of $0.03compared to a diluted loss per share of $2.72 in the first quarter of 2022.
Adjusted net loss* of $188 million improved $559 million from the first quarter of 2022. Adjusted loss per share* of $0.53 compared to an adjusted loss per share of $2.09 in the first quarter of 2022.
Adjusted CASM (adjusted cost per available seat mile) of 14.52 cents improved 6.9 per cent from the first quarter of 2022. The unit cost improvement resulting from higher operated capacity was partially offset by a favourable maintenance cost adjustment of $159 million recorded in the first quarter of 2022. First quarter 2023 CASM of 20.38 cents increased 2.5% from the first quarter of 2022 due to significantly higher fuel prices, higher ground package costs and higher passenger service costs due to higher traffic and higher selling costs, which are largely driven by revenues.
Adjusted EBITDA of $411 million, with an adjusted EBITDA margin of 8.4 per cent, improved from a negative adjusted EBITDA of $143 million in the first quarter of 2022.
Net cash flows from operating activities of $1.437 billion increased $1.070 billion from the first quarter of 2022.
Free cash flow of $987 million increased $896 million from the first quarter of 2022.
Outlook
For the second quarter of 2023, Air Canada plans to increase its ASM capacity by about 22 per cent from the same quarter in 2022. On May 4, 2023, Air Canada updated its 2023 guidance:
Metric
FY 2023 guidance
ASM capacity
About 23 per cent increase versus 2022 (approximately 90 per cent of 2019 levels)
Adjusted CASM
About 0.5 to 2.5 per cent below 2022 levels
Adjusted EBITDA
About $3.5 – $4.0 billion
Major Assumptions
Assumptions were made by Air Canada in preparing and making forward-looking statements. As part of its assumptions, Air Canada assumes moderate Canadian GDP growth for 2023, that the Canadian dollar will trade, on average, at C$1.34 per U.S. dollar for the full year 2023 and that the price of jet fuel will average C$1.09 per litre for the full year 2023.
The revised guidance for adjusted EBITDA reflects expected earnings resulting from an improvement in traffic and yield from a stronger-than-anticipated demand environment and lower-than expected fuel price. The revised guidance for adjusted CASM reflects adjustments to various expense items including those resulting from the higher-than-expected traffic. Air Canada’s 2023 capacity guidance remains substantially unchanged.
Air Canada also modified the baseline comparison for its 2023 adjusted CASM guidance, comparing it to a 2022 instead of a 2019 baseline. Given the new cost environment, prior comparisons to the 2019 baseline are no longer as meaningful, and comparisons to 2022 are more appropriate.
Air Canada is not updating its 2024 targets at this time and will continue evaluating them as it progresses with its plans and executes on its strategic priorities.
Non-GAAP Financial Measures
Below is a description of certain non-GAAP financial measures and ratios used by Air Canada to provide readers with additional information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized 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.
Adjusted CASM
Air Canada uses adjusted CASM to assess the operating and cost performance of its ongoing airline business without the effects of aircraft fuel expense, the cost of ground packages at Air Canada Vacations, impairment of assets, and freighter costs as these items may distort the analysis of certain business trends and render comparative analysis across periods less meaningful and generally allows for a more meaningful analysis of Air Canada’s operating expense performance and a more meaningful comparison to that of other airlines.
In calculating adjusted CASM, aircraft fuel expense is excluded from operating expense results as it fluctuates widely depending on many factors, including international market conditions, geopolitical events, jet fuel refining costs and Canada/U.S. currency exchange rates. Air Canada also incurs expenses related to ground packages at Air Canada Vacations which some airlines, without comparable tour operator businesses, may not incur. In addition, these costs do not generate ASMs and therefore excluding these costs from operating expense results provides for a more meaningful comparison across periods when such costs may vary.
Air Canada also incurs expenses related to the operation of freighter aircraft which some airlines, without comparable cargo businesses, may not incur. Air Canada had six Boeing 767 dedicated freighter aircraft in its operating fleet as at March 31, 2023 compared to one Boeing 767 dedicated aircraft as at March 31, 2022. These costs do not generate ASMs and therefore excluding these costs from operating expense results provides for a more meaningful comparison of the passenger airline business across periods.
Adjusted CASM is reconciled to GAAP operating expense as follows:
(Canadian dollars in millions, except where indicated)
First Quarter
2023
2022
Change
Operating expense – GAAP
$
4,904
$
3,123
$
1,781
Adjusted for:
Aircraft fuel
(1,375)
(750)
(625)
Ground package costs
(318)
(129)
(189)
Impairment of assets
–
(4)
4
Freighter costs (excluding fuel)
(31)
(11)
(20)
Operating expense, adjusted for the above-noted items
$
3,180
$
2,229
$
951
ASMs (millions)
21,907
14,297
53.2 %
Adjusted CASM (cents)
¢
14.52
¢
15.59
¢
(1.07)
EBITDA and Adjusted EBITDA
EBITDA (earnings before interest, taxes, depreciation and amortization) is commonly used in the airline industry and is used by Air Canada as a means to view operating results before interest, taxes, depreciation and amortization as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. In calculating adjusted EBITDA, Air Canada excludes impairment of assets as this may distort the analysis of certain business trends and render comparative analysis across periods or to other airlines less meaningful.
Adjusted EBITDA Margin
Adjusted EBITDA margin (adjusted EBITDA as a percentage of operating revenues) is commonly used in the airline industry and is used by Air Canada as a means to measure the operating margin before interest, taxes, depreciation and amortization as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets.
EBITDA, adjusted EBITDA and adjusted EBITDA margin are reconciled to GAAP operating income (loss) as follows:
First Quarter
(Canadian dollars in millions, except where indicated)
2023
2022
Change
Operating loss – GAAP
$
(17)
$
(550)
$
533
Add back:
Depreciation and amortization
428
403
25
EBITDA
$
411
$
(147)
$
558
Remove:
Impairment of assets
–
4
(4)
Adjusted EBITDA
$
411
$
(143)
$
554
Operating revenues
$
4,887
$
2,573
$
2,314
Operating margin (%)
(0.3)
(21.4)
21.1 pp
Adjusted EBITDA margin (%)
8.4
(5.6)
14.0 pp
Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share – Diluted
Air Canada uses adjusted net income (loss) and adjusted earnings (loss) per share – diluted as a means to assess the overall financial performance of its business without the after-tax effects of impairment of assets, foreign exchange gains or losses, net financing expense relating to employee benefits, gains or losses on financial instruments recorded at fair value, gains or losses on the sale and leaseback of assets, gains or losses on debt settlements and modifications, and gains or losses on disposal of assets as these items may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful.
Adjusted net income (loss) and adjusted earnings (loss) per share are reconciled to GAAP net income as follows:
(Canadian dollars in millions)
First Quarter
2023
2022
$ Change
Net income (loss) – GAAP
$
4
$
(974)
$
978
Adjusted for:
Impairment of assets
–
4
(4)
Foreign exchange gain
(127)
(99)
(28)
Net interest relating to employee benefits
(6)
(4)
(2)
(Gain) loss on financial instruments recorded at fair value
(38)
173
(211)
Income tax, including for the above reconciling items (1)
(21)
153
(174)
Adjusted net loss
$
(188)
$
(747)
$
559
Weighted average number of outstanding shares used in computing diluted income per share (in millions)
358
358
–
Adjusted loss per share – diluted
$
(0.53)
$
(2.09)
$
1.56
(1)
In 2023, the deferred income tax expense recorded in other comprehensive income related to remeasurements on employee benefit liabilities is offset by a deferred income tax recovery that was recorded through Air Canada’s consolidated statement of operations. This recovery is removed from adjusted net income (loss). In comparison, a deferred income tax expense was removed from adjusted net income (loss) for the year 2022.
The table below reflects the share amounts used in the computation of basic and diluted earnings per share on an adjusted earnings per share basis.
(In millions)
First Quarter
2023
2022
Weighted average number of shares outstanding – basic
358
358
Effect of dilution
–
–
Weighted average number of shares outstanding – diluted
358
358
Free Cash Flow
Free cash flow is a non-GAAP financial measure used by Air Canada as an indicator of the financial strength and performance of its business, indicating how much cash it can generate from operations after capital expenditures. Free cash flow is calculated as net cash flows from operating activities minus additions to property, equipment, and intangible assets, net of proceeds from sale and leaseback transactions. Such measure is not a recognized measure for financial statement presentation under GAAP, does not have a standardized meaning, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results.
The table below reconciles free cash flow to net cash flows from (used in) operating activities for the periods indicated.
First Quarter
(Canadian dollars in millions)
2023
2022
$ Change
Net cash flows from operating activities
$
1,437
$
367
$
1,070
Additions to property, equipment, and intangible assets
(450)
(276)
(174)
Free cash flow
$
987
$
91
$
896
Net Debt
Net debt is a capital management measure and a key component of the capital managed by Air Canada and provides management with a measure of its net indebtedness. It refers to total long-term debt liabilities (including current portion) less cash, cash equivalents. and short- and long-term investments.
Net Debt to Trailing 12-Month Adjusted EBITDA (Leverage Ratio)
Net debt to trailing 12-month adjusted EBITDA ratio (also referred to as “leverage ratio”) is commonly used in the airline industry and is used by Air Canada as a means to measure financial leverage. Leverage ratio is calculated by dividing net debt by trailing 12-month adjusted EBITDA.
(Canadian dollars in millions)
March 31, 2023
December 31, 2022
Change
Total long-term debt and lease liabilities
$
14,901
$
15,043
$
(142)
Current portion of long-term debt and lease liabilities
1,163
1,263
(100)
Total long-term debt and lease liabilities (including current portion)
16,064
16,306
(242)
Less cash, cash equivalents and short and long-term investments
(9,532)
(8,811)
(721)
Net debt
$
6,532
$
7,495
$
(963)
Adjusted EBITDA (trailing 12 months)
$
2,011
1,457
554
Net debt to adjusted EBITDA ratio
3.2x
5.1x
(1.9)
For further information on Air Canada’s public disclosure file, including Air Canada’s 2022 Annual Information Form dated March 29, 2023, consult SEDAR at www.sedar.com.
First Quarter 2023 Conference Call
Air Canada will host its quarterly analysts’ call today, Friday, May 12, 2023, at 8:00 a.m. ET. Michael Rousseau, Air Canada President and Chief Executive Officer, Amos Kazzaz, Executive Vice President and Chief Financial Officer, Mark Galardo, Executive Vice President, Revenue and Network Planning, will present the results and be available for analysts’ questions. Immediately following the analysts’ Q&A session, Mr. Kazzaz and Pierre Houle, Vice President and Treasurer, will be available to answer questions from term loan B lenders and holders of Air Canada bonds.
Top Copyright Photo: Air Canada Boeing 787-9 Dreamliner C-FRTU (msn 37183) LAX (Michael B. Ing). Image: 960496.
Air Canada Boeing 737-8 MAX 8 C-GMIW (msn 61246) LAX (Michael B. Ing). Image: 960466.
Air Canada is updating its guidance for 2023. The revised guidance for adjusted EBITDA* reflects expected earnings resulting from an improvement in traffic and yield from a stronger-than-anticipated demand environment and lower-than expected fuel price. The revised guidance for adjusted CASM* reflects adjustments to various expense items including those resulting from the higher-than-expected traffic. Air Canada’s 2023 capacity guidance remains substantially unchanged.
Air Canada is also modifying the baseline comparison for its 2023 adjusted CASM guidance, comparing it to a 2022 instead of a 2019 baseline. Given the new cost environment, prior comparisons to the 2019 baseline are no longer as meaningful, and comparisons to 2022 are more appropriate.
Air Canada is providing the following updates to its 2023 guidance.
Metric
Full Year 2023 Guidance
Prior Guidance (Provided on February 17, 2023)
Updated Guidance (Provided on May 4, 2023)
ASM capacity
About 24 per cent increase versus 2022 (~90 per cent of 2019 levels)
About 23 per cent increase versus 2022 (~90 per cent of 2019 levels)
Adjusted CASM*
About 13 to 15 per cent above 2019 levels
About 0.5 to 2.5 per cent below 2022 levels
Adjusted EBITDA*
About $2.5 – $3.0 billion
About $3.5 – $4.0 billion
Air Canada is not updating its 2024 targets at this time and will continue evaluating them as it progresses towards its plans and executes on its strategic priorities.
*Adjusted CASM and adjusted EBITDA referred to in this news release, are non-GAAP financial measures. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized 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 for a reconciliation of Air Canada non-GAAP measures used in this news release to the most comparable GAAP financial measure.
Major Assumptions
Assumptions were made by Air Canada in preparing its updated guidance. As part of its assumptions, Air Canada assumes moderate Canadian GDP growth for 2023. Air Canada also assumes that the Canadian dollar will trade, on average, at C$1.34 per U.S. dollar for the full year 2023 and that the price of jet fuel will average C$1.09 per litre for the full year 2023.
Non-GAAP Financial Measures
Below is a description of certain non-GAAP financial measures and ratios used by Air Canada to provide readers with additional information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized 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.
Adjusted CASM
Air Canada uses adjusted CASM to assess the operating and cost performance of its ongoing airline business without the effects of aircraft fuel expense, the cost of ground packages at Air Canada Vacations, impairment of assets, and freighter costs as these items may distort the analysis of certain business trends and render comparative analysis across periods less meaningful and generally allows for a more meaningful analysis of Air Canada’s operating expense performance and a more meaningful comparison to that of other airlines.
In calculating adjusted CASM, aircraft fuel expense is excluded from operating expense results as it fluctuates widely depending on many factors, including international market conditions, geopolitical events, jet fuel refining costs and Canada/U.S. currency exchange rates. Air Canada also incurs expenses related to ground packages at Air Canada Vacations which some airlines, without comparable tour operator businesses, may not incur. In addition, these costs do not generate ASMs and therefore excluding these costs from operating expense results provides for a more meaningful comparison across periods when such costs may vary.
Air Canada also incurs expenses related to the operation of freighter aircraft which some airlines, without comparable cargo businesses, may not incur. Air Canada had six dedicated freighter aircraft in its fleet as at March 31, 2023. Prior to 2021, Air Canada did not incur any costs related to the operation of dedicated freighter aircraft. These costs do not generate ASMs and therefore excluding these costs from operating expense results provides for a more meaningful comparison of the passenger airline business across periods.
Adjusted CASM is reconciled to GAAP operating expense as follows:
(Canadian dollars in millions, except where indicated)
Full Year
2022
Operating expense – GAAP
$
16,743
Adjusted for:
Aircraft fuel
(5,276)
Ground package costs
(474)
Impairment of assets
(4)
Freighter costs (excluding fuel)
(86)
Operating expense, adjusted for the above-noted items
$
10,903
ASMs (millions)
82,558
Adjusted CASM (cents)
¢
13.21
EBITDA and Adjusted EBITDA
EBITDA (earnings before interest, taxes, depreciation and amortization) is commonly used in the airline industry and is used by Air Canada as a means to view operating results before interest, taxes, depreciation and amortization as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. In calculating adjusted EBITDA, Air Canada excludes impairment of assets as this may distort the analysis of certain business trends and render comparative analysis across periods or to other airlines less meaningful.
EBITDA and adjusted EBITDA are reconciled to GAAP operating income (loss) as follows:
(Canadian dollars in millions, except where indicated)
Full Year
2022
Operating loss – GAAP
$
(187)
Add back:
Depreciation and amortization
1,640
EBITDA
$
1,453
Impairment of assets
4
Adjusted EBITDA
$
1,457
Top Copyright Photo: Air Canada Boeing 737-8 MAX 8 C-GMIW (msn 61246) LAX (Michael B. Ing). Image: 960466.
Air Canada announced today the strategic expansion of its international network with the addition of new, nonstop flights from its hub at Vancouver International Airport (YVR) to Dubai.
The new route will operate four times weekly beginning Oct. 28, 2023 onboard Air Canada’s flagship Dreamliner fleet. The carrier’s new Vancouver-Dubai flights will complement Air Canada’s daily service between Toronto and Dubai, broadening its presence in fast-growing international markets.
CNW Group/Air Canada)
Air Canada’s international services
The Vancouver and Dubai flights will be operated with Boeing 787 Dreamliner aircraft featuring three cabins of service for customers to choose from, including Signature Class with lie-flat seats, Premium Economy and Economy Class.
Air Canada Boeing 787-9 Dreamliner C-FVND (msn 38361) LAX (Michael B. Ing). Image: 960271.
Air Canada today announced the addition of new, nonstop seasonal flights between Montreal and Amsterdam for this summer.
Air Canada today announced the addition of new, non-stop seasonal flights between Montreal and Amsterdam for this summer. (CNW Group/Air Canada)
Flights will operate five-times weekly with the airline’s state-of-the-art Boeing 787 Dreamliner aircraft, and conveniently link to and from Air Canada’s extensive North American network at its Montreal global hub.
Schedule:
Flight
From
To
Departs
Arrives
Operates
AC900
Montreal (YUL)
Amsterdam (AMS)
22:10
11:00 + 1 day
Mon, Tue, Wed, Fri, SatJun 2-Oct 14
AC901
Amsterdam (AMS)
Montreal (YUL)
14:00
15:30
Tue, Wed, Thu, Sat, SunJun 3-Oct 15
Top Copyright Photo: Air Canada Boeing 787-9 Dreamliner C-FVND (msn 38361) LAX (Michael B. Ing). Image: 960271.
Air Canada on February 28 issued the following statement in response to reports about the Greater Toronto Airport Authority imposing limits on carrier operations at Toronto-Pearson airport.
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Air Canada was first advised of the GTAA’s plans in August 2022, and so it designed its 2023 winter schedule with these limitations taken into account and anticipates no significant changes to its schedule for the March Break travel period. It subsequently received information about GTAA’s plans for summer 2023 and similarly designed this coming summer’s schedule to meet those parameters.
It is Air Canada’s policy to work with its industry partners to meet the requirements of airports and other third parties to drive operational improvements and support the smooth running of Canada’s air transport system. This includes, as in this case, adapting its schedule as required to ensure operational stability, and is a normal process.
Air Canada announced it has launched digital identification, becoming the first airline in Canada with approval to offer customers the safety and convenience of a new option using facial recognition technology to confirm identification. In a pilot project currently underway, Air Canada’s digital identification is now available for customers departing from Vancouver International Airport (YVR) when boarding select flights to Winnipeg, and for eligible customers entering the Air Canada Café at Toronto Pearson International Airport. Air Canada plans to expand digital identification options to select Canadian airports and Maple Leaf Lounges as part of its pilot project phase.
In a pilot project currently underway, Air Canada’s digital identification is now available for customers departing from Vancouver International Airport (YVR) when boarding select flights to Winnipeg, and for eligible customers entering the Air Canada Café at Toronto Pearson International Airport. (CNW Group/Air Canada)
Air Canada’s digital identification is strictly an optional, consent-based Air Canada program. It is not related to any government-sponsored program like NEXUS, Global Entry or US CBP Mobile Passport Control (MPC).
Air Canada Airbus A220-300 (CS300 BD-500-1A11) C-GJYA (msn 55088) MIA (Bruce Drum). Image: 105896.
Record fourth quarter passenger revenues of $4.062 billion, doubled than fourth quarter 2021 and about two per cent higher than fourth quarter 2019
Record fourth quarter operating revenues of $4.680 billion, 71 per cent higher than fourth quarter 2021 and about six per cent higher than fourth quarter 2019
Operating losses of $28 million in the fourth quarter of 2022 and of $187 million for the full year 2022
Adjusted EBITDA* of $389 million in the fourth quarter of 2022 and of $1.457 billion for the full year 2022
Adjusted EBITDA margin* of 8.3 per cent for the fourth quarter of 2022 and of 8.8 per cent for the full year 2022
Total liquidity of over $9.8 billion at December 31, 2022
Air Canada reported its fourth quarter and full year 2022 financial results.
“We are pleased with our fourth quarter and full year 2022 financial results. We reported record fourth quarter passenger and operating revenues, surpassing our results from a year ago and those of the fourth quarter of 2019. This was due to solid demand and yield environments across our network. This progress was also a result of the dedication and hard work of our employees who safely transported more than two million customers during a holiday period challenged by severe winter weather across North America, and to our entire team who successfully executed on our strategy. I warmly thank them,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.
(*Adjusted CASM, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted pre-tax income (loss), free cash flow, leverage ratio, net debt, and return on invested capital referred to in this news release, are non-GAAP financial measures, capital management measures, non-GAAP ratios or supplementary financial measures. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized 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 for a reconciliation of Air Canada non-GAAP measures used in this news release to the most comparable GAAP financial measure.)
“Our performance is attributable to the deep resilience we have built into our company for long-term stability. We reported positive cash flows from operations in the fourth quarter of $647 million and positive free cash flow of $320 million. We exercised diligent cost control. Our adjusted EBITDA of $389 million was $367 million better than a year ago. For the full year, we reported adjusted EBITDA of $1.457 billion and an adjusted EBITDA margin of 8.8 per cent, meeting our full-year 2022 guidance. We ended the year with total liquidity of more than $9.8 billion.
“These results also validate our strategy of diversifying our revenue sources. In our core passenger business, revenue was about two per cent higher than in the fourth quarter of 2019. Revenue from our premium cabins was about 13 per cent higher, supported in part by Aeroplan. The loyalty program’s active membership is at an all-time high and continues to grow, and Air Canada Cargo revenue was up 55 per cent compared to the same quarter pre-pandemic. Similarly, Air Canada Vacations ground package revenues contributed to the growth in other revenues of $62 million, or 23 per cent higher than the fourth quarter of 2019,” said Mr. Rousseau.
“We are very encouraged with the positive outlook ahead. Our quarterly ticket sales were 102 per cent of the fourth quarter of 2019, on a lower level of capacity, and we expect a solid demand environment in 2023. In anticipation, we are building out our global network, continuing our narrow-body fleet renewal, and investing in technology and customer service. More than 36 million people chose to fly with Air Canada last year. We appreciate and thank them for their loyalty. We intend to do much more to provide them with an elevated level of customer service and continuous value from our airline in 2023 and beyond.”
Fourth Quarter 2022 Financial Results
Operating capacity, measured by Available Seat Miles (ASMs) increased about 59 per cent from the fourth quarter of 2021, representing about 85 per cent of the fourth quarter of 2019 ASMs, in line with projections in Air Canada’s third quarter 2022 earnings release, dated October 28, 2022.
Record fourth quarter passenger revenues of $4.062 billion nearly doubled from the fourth quarter of 2021, or about a two per cent increase from the fourth quarter of 2019.
Record fourth quarter operating revenues of $4.680 billion increased 71 per cent from the fourth quarter of 2021 and about six per cent from the fourth quarter of 2019.
Operating expenses of $4.708 billion increased $1.474 billion from the fourth quarter of 2021.
Cost per available seat mile (CASM) decreased to 21.1 cents from 23.0 cents in the fourth quarter of 2021.
Adjusted cost per available seat mile* (adjusted CASM) of 13.7 cents, compared to fourth quarter 2021 adjusted CASM of 16.7 cents. Compared to the fourth quarter of 2019, adjusted CASM increased about 15 per cent.
Operating loss of $28 million, significantly better than an operating loss of $503 million in the fourth quarter of 2021.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $389 million, an increase from adjusted EBITDA of $22 million in the fourth quarter of 2021.
Net income of $168 million (or $0.41 per diluted share), compared to a net loss of $493 million (or $1.38 per diluted share) in the fourth quarter of 2021. Fourth quarter 2022 net income included a foreign exchange gain of $316 million.
Adjusted net loss* of $217 million (or $0.61 per diluted share), compared to an adjusted net loss of $577 million (or $1.61 per diluted share) in the fourth quarter of 2021.
Net cash flows from operations of $647 million compared to net cash flows from operations of $508 million in the fourth quarter of 2021.
Full Year 2022 Financial Results
Operating capacity, measured by Available Seat Miles (ASMs) increased two-and-a-half times from 2021, representing about 73 per cent of 2019 ASMs, in line with projections in Air Canada’s third quarter 2022 earnings release, dated October 28, 2022.
Passenger revenues of $14.238 billion more than tripled from 2021, recovering to about 83 per cent of 2019 passenger revenues.
Operating revenues of $16.556 billion increased over two-and-a-half times from 2021, recovering to about 87 per cent of 2019 operating revenues.
Operating expenses of $16.743 billion increased $7.294 billion or 77 per cent from 2021.
Cost per available seat mile (CASM) decreased to 20.3 cents from 28.3 cents in 2021.
Adjusted CASM of 13.2 cents compared to 2021 adjusted CASM of 23.3 cents. Compared to 2019, adjusted CASM increased approximately 19 per cent, one percentage point above the high-end of the range projected in Air Canada’s third quarter 2022 earnings release, dated October 28, 2022. This increase was due to the impact of higher passenger traffic and yield (which increased sales and distribution costs), general inflationary pressures, including but not limited to higher catering and service costs, customer disruption costs greater than expected (largely due to weather-related disruptions in the fourth quarter of 2022), and higher employee benefits expense.
Operating loss of $187 million significantly better than an operating loss of $3.049 billion in 2021.
Adjusted EBITDA of $1.457 billion, compared to negative adjusted EBITDA of $1.464 billion in 2021.
Net loss of $1.700 billion (or $4.75 per diluted share), compared to a net loss of $3.602 billion (or $10.25 per diluted share) in 2021. 2022 net loss included a foreign exchange loss of $732 million.
Adjusted net loss of $988 million (or $2.76 per diluted share), compared to an adjusted net loss of $3.768 billion (or $10.74 per diluted share) in 2021.
Net cash flows from operations of $2.368 billion compared to net cash used in operations of $1.502 billion in 2021.
Outlook
For the first quarter of 2023, Air Canada plans to increase its ASM capacity by about 50 per cent from the same quarter in 2022 (or approximately 84 per cent of first quarter 2019 ASM capacity).**
Air Canada is providing the following guidance for the full year 2023 and updates to its 2024 long-term targets described below.
Metric
FY 2023 Guidance
FY 2024 Targets
ASM capacity
Increase of about 24 per cent from 2022 ASM levels (or about 90 per cent of 2019 ASM levels)**
About 100 per cent of 2019 ASM levels
Adjusted CASM
About 13 to 15 per cent above 2019 levels
About 8 to 10 per cent above 2019 levels
Adjusted EBITDA
About $2.5 – $3.0 billion
About $3.5 – $4.0 billion
Leverage ratio
N/A
Approaching 1.5 by year-end 2024
Annual Return on invested capital (ROIC)
N/A
About 15 per cent by year- end 2024
Cumulative free cash flow*
N/A
About $2.5 billion for the 2022-2024 period
Major Assumptions
Assumptions were made by Air Canada in preparing and making forward-looking statements. As part of its assumptions, Air Canada assumes moderate Canadian GDP growth for 2023. Air Canada also assumes that the Canadian dollar will trade, on average, at C$1.34 per U.S. dollar for the full year 2023 and that the price of jet fuel will average C$1.30 per litre for the full year 2023.
Air Canada provided 2024 targets via news release, dated March 30, 2022, in conjunction with its 2022 Investor Day held on the same day. The following includes updates and provides explanations for the restated targets:
For 2024, Air Canada expects a full year ASM capacity of about 100 per cent of 2019 ASM levels; up from 95 per cent of 2019 levels, as a result of securing additional interim lift.
Air Canada expects 2024 adjusted CASM to increase by about 8 to 10 per cent when compared to 2019, as compared to an increase of 2 to 4 per cent as provided at the 2022 Investor Day. The increase is due to the impact of higher passenger traffic (which increases sales and distribution costs), higher staffing levels to continuously improve operational performance and customer service levels, and general inflationary pressures.
Air Canada is withdrawing its annual adjusted EBITDA margin target of about 19 per cent for full year 2024 and is now providing an adjusted EBITDA target, which is a better indicator to assess its financial performance. For 2024, Air Canada expects its adjusted EBITDA to range between about $3.5 – $4.0 billion. This new target for adjusted EBITDA range is in line with the adjusted EBITDA reflected in the margin target communicated at the 2022 Investor Day.
Air Canada anticipates net debt to trailing 12-month adjusted EBITDA (leverage ratio)* to approach 1.5 by year-end 2024, up from 1.0 as provided at the 2022 Investor Day. The increase in Air Canada’s targeted leverage ratio is attributable to expected higher cash used for capital expenditures, mainly due to additional freighter investments than previously forecast.
The target for annual return on invested capital (ROIC) of about 15 per cent by year-end 2024 remains unchanged from prior target.
Air Canada expects cumulative free cash flow generation of about $2.5 billion for the 2022-2024 period, as compared to about $3.5 billion provided at the 2022 Investor Day. The decrease in free cash flow is due to higher cash used for capital expenditures, as described above, partially offset by higher cash from operations.
(**Air Canada will continue to adjust capacity and take other measures as required, including to account for passenger demand, public health guidelines, travel restrictions globally, inflation and other cost pressures.)
Top Copyright Photo: Air Canada Airbus A220-300 (CS300 BD-500-1A11) C-GJYA (msn 55088) MIA (Bruce Drum). Image: 105896.
Air Canada Cargo and Emirates SkyCargo have signed a Memorandum of Understanding (MoU) to deliver more benefits to their air freight customers around the world.
The MoU, which builds on the airlines’ strategic commercial partnership announced last year, was signed at Emirates Headquarters in Dubai, UAE by Nabil Sultan, Emirates Divisional Senior Vice President, Cargo and Matthieu Casey, Managing Director Commercial, Air Canada Cargo.
Under the terms of the MoU, Air Canada Cargo and Emirates SkyCargo will work closely on a number of initiatives, which include expanding cargo interline options and block space agreements, pending any required regulatory approvals. These enhancements aim to offer freight customers of both airlines access to more capacity on a larger combined global network.
Air Canada Cargo will have access to Emirates SkyCargo’s high frequency distribution network through the belly-hold of Emirates scheduled passenger flights to over 140 global destinations, as well as the additional capacity offered by 11 freighters currently in the Emirates fleet. In return, SkyCargo will have access to over 60 cities in Canada and more than 150 cities across five continents through Air Canada Cargo thanks to a fleet of Boeing 767 freighters and the belly-hold capacity of Air Canada’s scheduled passenger flights.
Both airlines bring particular experience in handling unique cargo, such as oil and gas drilling equipment, car parts and pharmaceuticals on their dedicated fleet of freighters or passenger aircraft.mirates
Since announcing their strategic partnership in 2022, Emirates and Air Canada have implemented a passenger codeshare agreement that spans 46 destinations across North America, the Middle East, Asia and Africa, and have launched a Loyalty program partnership to allow Aeroplan and Skywards members to earn and redeem Miles and Points on all flights operated by Air Canada and Emirates, respectively.
