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Be the first with the news that moves the market- Air Canada (AC) has announced its 2019 financial statistics
- Earnings before tax were up 19 per cent compared to last year and the company reported profits of C$1.65 billion
- The company’s Boeing 373 Max planes are were suspended for most of 2019 due to a technical fault and are yet to be reinstated
- Air Canada has forecast a C$20 million dip in this year’s first quarter revenue due to the affects of COVID-19 on the airlines operations
- Despite this reduction, the full year forecast predicts over-all earnings growth of one to two percent.
- Air Canada (AC) was down 2.64 per cent, with shares currently trading at C$45.00
Air Canada (TSX:AC) released encouraging 2019 results amid a rocky start to 2020.
Earnings before tax were C$3.636 billion, up 19 per cent when compared to 2018. Profits were also up on the previous year to C$1.65 billion.
This strong numbers are surprising as 2019 had been a difficult year for the company in some respects.
All of Air Canada’s Boeing 373 MAX aircrafts (approximately 25 per cent of the airline’s narrow-body fleet) were unable to fly during most of the year. The Boeing model was grounded worldwide due to a technological fault and is yet to be cleared to fly again.
Calin Rovinescu, President and CEO of Air Canada, thinks the robust growth through 2019 reflects well on the company’s resilience.
“These results underscore the airline’s ability to overcome major challenges (…) with this backdrop, I am especially proud that we were able to deliver on the outlook we provided for key financial metrics for the year,” he said.
While the figures for 2019 appear positive, the company was quick to warn against low numbers in the coming quarters.
Air Canada’s first quarter 2020 has been marred heavily by the COVID-19 virus. Flights remain suspended between Toronto and Hong Kong with no sign of letting up.
This coupled with the on-going suspension of the Boeing 737 Max means Air Canada’s first quarter revenue is expected for be C$200 million less than the same quarter in 2019.
Despite the reduction in the first quarter, Air Canada predicts the full-year revenue to be one to two per cent higher than in 2019.
Nevertheless, this forecasted growth is much slower than the 13 per cent increase between 2018-2019 reported today. These predictions are dependent on Air Canada’s Boeing and COVID-19 issues resolving before the third quarter.
Mr Rovinescu went on to say that, while 2020 remains uncertain, Air Canada’s strong balance sheet and diverse revenue sources equip them to handle the coming challenges.
Air Canada (AC) was down 2.64 per cent, with shares currently trading at C$45.00
