Category Archives: Air Canada

Air Canada and Cirque du Soleil renew partnership to bring a world of wonder to millions worldwide

Air Canada and Cirque du Soleil® announced the renewal of their exclusive partnership that will see Air Canada continue as the official airline for Big Top and Arena shows in Canada, the U.S., Europe and Australia through December 2024. The two globally renowned, Quebec-based companies will celebrate bringing Canadian creativity and talent to the world at tonight’s Montreal premiere of Corteo by Cirque du Soleil at the Bell Centre.

Since January 2020, Air Canada has been the official airline flying Cirque du Soleil’s employees and artists to shows in many destinations around the world. The partnership renewal allows Air Canada to continue being a champion of Canadian and global talent in the sky and on the world’s stage. As a global airline, Air Canada flies to six continents and close to 200 destinations, including several of Cirque du Soleil’s 2023 tours in Vancouver, Calgary, Toronto, Montreal, Los Angeles, Denver, and London, to name a few.

(CNW Group/Air Canada)

More than 125 million spectators have experienced a Cirque du Soleil Big Top or Arena show since 1984 as its wonderous productions remain enduring and relevant in culture, internationally.

The multi-year agreement includes brand inclusion in Cirque du Soleil’s communications campaigns, on-site visibility and promotional privileges, in addition to a robust hospitality package across all territories.

Top Copyright Photo: Air Canada Boeing 737-8 MAX 8 C-FTJV (msn 61207) BFI (Brian Worthington). Image: 959707.

Air Canada aircraft photo gallery:

Air Canada to launch nonstop Vancouver – Miami service

Air Canada on December 17, according to Miami International Airport, will launch nonstop Miami-Vancouver service three times a week, giving MIA its longest North American route and its largest unserved North American market.

Vancouver will also join Montreal and Toronto as MIA’s third Canadian destination and provide another connection point to long-range destinations like Australia and New Zealand.

Top Copyright Photo: Air Canada Boeing 737-8 MAX 8 C-FSES (msn 61213) YYZ (TMK Photography). Image: 959639.

Air Canada aircraft photo gallery:

Air Canada announces three new U.S. routes

Air Canada today announced three new U.S. routes, including service from Toronto and Montreal to New York’s John F. KennedyInternational Airport, and Toronto to Sacramento as part of its trans-border summer schedule.

For summer 2023, Air Canada will also restore 11 suspended trans-border services and increase frequencies on 12 popular routes to the U.S. in rebuilding its global network following the pandemic.

New U.S. Services

 

Air Canada is further cementing its leadership as the largest international carrier serving the New York market, offering more than 3,500 seats on 39 daily flights from six Canadian cities (Vancouver, Calgary, Toronto, Montreal, Ottawa, Halifax) into New York City’s three major airports (JFK, Newark, LaGuardia).

New services to New York’s JFK will begin March 26, with double daily service from Toronto and daily service from Montreal. Flights will be operated by Air Canada Express using an Embraer E175 aircraft with 76 seats in a Business and Economy Class configuration.

Flight

Departs

Arrives

Frequency

AC8899

New York JFK 12:45

Montreal 14:20

Daily

AC8898

Montreal 18:25

New York JFK 20:00

Daily

AC8553

New York JFK 10:00

Toronto 11:45

Daily

AC8554

Toronto 11:00

New York JFK 12:36

Daily

AC8555

New York JFK 13:25

Toronto 15:10

Daily

AC8556

Toronto 20:30

New York JFK 22:06

Daily

New service between Toronto and Sacramento will begin June 1, 2023. Flights will be operated year-round, four-days-a-week, by Air Canada using an Airbus A220-300 aircraft with 137 seats in a Business Class and Economy Class configuration.

Flight

Departs

Arrives

Days of Week

AC759

Toronto 18:30

Sacramento 20:55

Monday, Wednesday, Friday, Sunday

AC758

Sacramento 09:25

Toronto 17:15

Monday, Tuesday, Thursday, Saturday

In addition to the new TorontoSacramento service beginning in June, Air Canada’s HalifaxNewark daily service starting December 16, 2022, its MontrealTampa three-times-weekly service, its VancouverMiami three-times-weekly service starting December 17, 2022, and its new VancouverHouston daily service starting December 16, 2022 will continue in the summer as year-round operations.

Transborder Flight Resumptions

Route

Start Date

Frequency

Vancouver-Austin

May 1, 2023

Three times weekly

Montreal-Nashville

May 1, 2023

Three times weekly

Calgary-Los Angeles

May 1, 2023

Daily

Toronto-Milwaukee

May 1, 2023

Daily

Montreal-Philadelphia

May 1, 2023

Two times daily

Montreal-Pittsburgh

May 1, 2023

Daily

Vancouver-Anchorage

May 1, 2023

Daily

Montreal-Seattle

May 15, 2023

Daily

Toronto-Hartford

June 1, 2023

Two times daily

Toronto-Salt Lake City

June 1, 2023

Three times weekly

Toronto-Kansas City

June 17, 2023

Daily

Toronto-Portland

June 17, 2023

Daily

Vancouver-Boston

June 17, 2023

Daily

Frequency Increases (transborder to the U.S)

Route

Frequency (Summer 2023 versus Summer 2022)

Vancouver-Seattle

Increases to six times daily from five daily

Vancouver-San Francisco

Increases to five times daily from four daily

Toronto-San Francisco

Increases to five times daily from three daily

Vancouver-San Diego

Increases to three times daily from twice daily

Vancouver-Newark

Increases to two times daily from once daily

Toronto-San Diego

Increases to two times daily from once daily

Toronto-Seattle

Increases to two times daily from once daily

Toronto-Minneapolis

Increases to four times daily from three daily

Toronto-Philadelphia

Increases to four times daily from three daily

Toronto-Pittsburgh

Increases to four times daily from three daily

Toronto-Washington (Reagan)

Increases to four times daily from twice daily

Toronto-Indianapolis

Increases to three times daily from twice daily

Toronto-Baltimore

Increases to three times daily from twice daily

Montreal-San Diego

Increases to daily from three times weekly

All Air Canada flights provide for Aeroplan accumulation and redemption and, where available, for eligible customers and Aeroplan members, priority check-in, Maple Leaf Lounge access, priority boarding and other benefits.

Top Copyright Photo: Air Canada Airbus A220-300 (CS300 BD-500-1A11) C-GMYU (msn 55097) YYZ (TMK Photography). Image: 959598.

Air Canada aircraft photo gallery:

Air Canada announces its 2023 summer schedule

Air Canada today announced a new service between Montreal and Fort McMurray that will launch next June as part of the carrier’s Canadian summer schedule. For summer 2023, Air Canada is also restoring suspended services and increasing frequencies on popular routes across Canada, as the company augments its Canadian network following the pandemic.

New service between Montreal and Fort McMurray will begin June 20, 2023. Flights will be operated year-round, three days a week, by Air Canada Rouge using an Airbus A319 aircraft with 136 seats in a Premium Rouge and Economy Class configuration. With its new Montreal and existing Toronto service, Air Canada will be the only carrier connecting Fort McMurray nonstop to Quebec and Ontario.

Flight

Departs

Arrives

Days of Week

AC1943

Montreal 08:15

Fort McMurray 10:38

Tuesday, Wednesday, Thursday

AC1942

Fort McMurray 12:05

Montreal 17:52

Tuesday, Wednesday, Thursday

Air Canada also announced today the resumption of several seasonal routes and one previously suspended route. This includes daily Gander-Toronto flights beginning June 1, London, OntarioMontreal flights beginning June 17, four-times weekly Fort McMurrayToronto flights resuming May 1, and three-times weekly Calgary-Quebec City flights starting June 19.

In addition, Air Canada is planning daily widebody service on its OttawaVancouver route while also offering multiple options to popular leisure destinations, such as Kelowna and Victoria through its three main hubs.

Frequency Increases

Route

Frequency (Summer 2023 versus Summer 2022)

Edmonton-Montreal

Increases to four times daily from twice daily

Vancouver-Montreal

Increases to six times daily from five daily

Calgary-Toronto

Increases to 13 times daily from 11 daily

Kelowna-Vancouver

Increases to eight times daily from seven daily

Winnipeg-Toronto

Increases to seven times daily from five daily

Saint John-Toronto

Increases to three times daily from once daily

Kelowna-Toronto

Increases to two times daily from once daily

Quebec City-Vancouver

Increases to five times from three times weekly

Top Copyright Photo: Air Canada rouge (Air Canada) Airbus A319-114 C-FYIY (msn 634) YYZ (TMK Photography). 933207.

Air Canada Rouge aircraft photo gallery:

Air Canada launches Vancouver – Bangkok flights

Air Canada made this announcement:

A celebration was held at Vancouver International Airport (YVR) yesterday to mark Air Canada’s inaugural flight AC65, which departed last night from YVR.

(CNW Group/Air Canada)

The flight is now enroute to Thailand and scheduled to arrive in Bangkok Saturday morning.

Top Copyright Photo: Air Canada Boeing 787-9 Dreamliner C-FVND (msn 38361) ZRH (Andi Hiltl). Image: 959533.

Air Canada aircraft photo gallery:

Air Canada launches live TV onboard select domestic flights

Air Canada today announced it has launched Live TV on select aircraft and domestic routes, becoming the only Canadian carrier to offer customers the ability to cheer on their favorite sports teams by watching global sporting events in real time or watch live national news onboard a flight. Live TV on Air Canada flights currently features six Canadian English and French channels which are available as part of the airline’s complimentary and extensive inflight entertainment programming.

Live TV is presently available on domestic routes from coast to coast operated with a Live TV-enabled aircraft. Currently 40 Boeing 777, Boeing 787, Airbus A330 and Airbus A220 aircraft are Live TV-enabled, and Air Canada expects 50% of domestic flights operated by mainline aircraft to offer Air Live TV by the second of quarter 2023.

Air Canada’s Live TV experience is delivered through a satellite-connected, inflight entertainment solution.

Live TV programming on Air Canada flights is comprised of:

  • TSN, TSN 2 and RDS delivering comprehensive live sports coverage for marquee sports events including soccer, hockey, basketball, football, baseball, golf, professional motor racing, and more
  • CTV News Channel delivering breaking news from communities across Canada and around the world as the country’s 24-hour all-news network
  • LCN, Quebec’s all-news station delivering news and rich programming from morning to night
  • BNN Bloomberg as Canada’s definitive source for business news, delivering breaking finance updates and live market coverage

Top Copyright Photo: Air Canada Airbus A220-300 (CS300 BD-500-1A11) C-GWUQ (msn 55179) YYZ (TMK Photography). Image: 959332.

Air Canada aircraft photo gallery:

Air Canada and Emirates activate their codeshare partnership

Air Canada and Emirates have announced the launch of their codeshare cooperation. The new partnership will allow customers of the carriers to enjoy seamless connectivity to 46 markets spanning three continents, including to destinations across the Americas, the Middle East, Africa, Southeast Asia, and the Indian subcontinent.

Beginning on November 1, 2022, codeshare tickets will be available for sale to 35 markets for travel effective December 1 with 11 additional markets to be added pending final regulatory approval, and the potential for more markets to be included beyond that. Tickets are available via the carriers’ websites at aircanada.com and emirates.com as well as via major GDS systems and travel agencies.

Emirates customers will be able to book codeshare flights to and from Canadian points beyond Toronto, including Calgary, Edmonton, Halifax, Montreal, Ottawa and Vancouver.

Air Canada will place its code on routes operated by Emirates from its hub in Dubai, expanding the airline’s reach across the Indian subcontinent and unlocking more destinations, including Colombo, Dhaka, Islamabad, Karachi, and Lahore.

Seamless connectivity will also be enjoyed by Air Canada’s customers travelling to Southeast Asian destinations including Bangkok, Hanoi, Phuket, Kuala Lumpur and Singapore; the Middle Eastern cities Jeddah and Muscat; as well as destinations in Africa, namely Addis Ababa and Dar Es Salaam.

Coming soon, the airlines will introduce a reciprocal frequent flyer offering, allowing members of Aeroplan and Skywards to earn and redeem points on flights operated by Emirates and Air Canada, respectively. Eligible passengers will also soon be able to take advantage of reciprocal lounge access, along with select benefits for Aeroplan Elite and Skywards members when travelling on the partner airline. Further details and launch dates will be announced at a later date.

* Codeshare activities are subject to government approvals.

Top Copyright Photo: Air Canada Boeing 777-233 LR C-FNND (msn 35246) YYZ (TMK Photography). Image: 959282.

Air Canada aircraft photo gallery:

 

Air Canada reduces its net loss in the third quarter to $508 million

Air Canada issued this financial report for the third quarter:

Operating margin of 12.1 per cent, first positive quarterly operating margin since the pandemic began

Operating revenues of $5.322 billion, more than double the third quarter of 2021

Net loss of $508 million compared to a net loss of $640 million in the third quarter of 2021

EBITDA margin* of 19.9 per cent for the third quarter of 2022

Total liquidity of over $10.2 billion at September 30, 2022

Air Canada today reported its third quarter 2022 financial results.

“Air Canada’s solid third quarter results stem from the ongoing restoration of our extensive network, an improved operational performance, our modern and efficient fleet, as well as leading products and services, and an incredible team of employees,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.

“We generated $644 million in operating income with a strong operating margin of 12.1 per cent. This was the first quarter since the pandemic began in which we delivered positive operating income. In addition, we achieved significant improvements in other metrics from a year ago. Operating revenues more than doubled to $5.3 billion, on a capacity growth of 130 per cent, and EBITDA* increased to over a billion, with a margin of 19.9 per cent. Yields also improved, helping offset higher fuel prices. Air Canada Cargo is consistently contributing to our results and Aeroplan is continuing to perform extremely well with travel’s return. Our transformed loyalty program’s gross billings from points sold, purchase volume on co-brand cards, and new members are all at record highs.

“Despite the global disruption of air travel, through teamwork and focused efforts, we safely transported nearly 11.5 million customers to their destinations this quarter. We are further encouraged by continuing strong demand, now further stimulated by the easing of COVID-related restrictions. Advance ticket sales in the quarter were at 95 per cent of third quarter 2019 levels. In the third quarter, our adjusted unit cost or adjusted CASM* improved by 38 per cent to 11.6 cents compared to the same period last year, and we will continue to carefully control costs. We ended the quarter with just over $10.2 billion in total liquidity.

“Thanks to the hard work and commitment of our employees, after a difficult June and July, we saw significant operational improvement throughout August and September, with the operation today now on par with pre pandemic levels.  Still, we know many customers experienced disruptions travelling this summer, and we sincerely regret any inconveniences that have occurred. We would like to thank our customers for their understanding and loyalty and assure them that the lessons of this operationally challenging period are now being applied to build greater resiliency going forward, and to elevate the customer experience overall. Air Canada marked its 85th anniversary this quarter. We stand on a robust foundation and, with our most recent financial results, investments and strategic plan, are confident we have a bright future in connecting Canada and the world,” said Mr. Rousseau.

Third Quarter 2022 Financial Results

Air Canada reported the following results for the third quarter of 2022:

  • Operating capacity, measured by Available Seat Miles (ASMs) more than doubled from the third quarter of 2021. Capacity in the third quarter was 79 per cent of the third quarter of 2019, in line with projections in Air Canada’s second quarter 2022 earnings release, dated August 2, 2022.
  • Passenger revenues of $4.818 billion increased about three times from the third quarter of 2021, representing about 94 per cent of passenger revenues in the third quarter of 2019.
  • Operating revenues of $5.322 billion increased about two-and-a-half times from the third quarter of 2021.
  • Operating expenses of $4.678 billion increased $2.211 billion from the third quarter of 2021.
  • Cost per available seat mile (CASM) decreased to 18.3 cents from the third quarter 2021 CASM of 22.2 cents, a sequential decrease from CASM of 20.8 cents in the second quarter of 2022.
  • Adjusted cost per available seat mile (Adjusted CASM)* of 11.6 cents compared to third quarter 2021 adjusted CASM of 18.7 cents, a sequential decrease from Adjusted CASM of 13.1 cents in the second quarter of 2022. Compared to the third quarter of 2019, Adjusted CASM increased 14.8 per cent.
  • Operating income of $644 million compared to an operating loss of $364 million in the third quarter of 2021, the first quarterly operating income since the pandemic began.
  • EBITDA* (excluding special items) or earnings before interest, taxes, depreciation, and amortization of $1.057 billion, better than the negative EBITDA of $67 million in the third quarter of 2021.
  • Net loss of $508 million (or $1.42 per diluted share), compared to a net loss of $640 million (or $1.79 per diluted share) in the third quarter of 2021. Third quarter 2022 net loss included a foreign exchange loss of $951 million.
  • Net cash flows from operations of $290 million compared to net cash flows from operations of $305 million in the third quarter of 2021.

* EBITDA (excluding special items), EBITDA margin, adjusted pre-tax income (loss), free cash flow, net debt, and adjusted CASM (discussed in this news release) are non-GAAP financial measures, non-GAAP ratios, or supplemental 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 Air Canada non-GAAP financial measures, non-GAAP ratios, and supplemental financial measures, and for a reconciliation of Air Canada non-GAAP measures used in this news release to the most comparable GAAP financial measure.

Outlook

For the fourth quarter of 2022, Air Canada plans to increase its ASM capacity by about 60 per cent from the same quarter in 2021 (or approximately 85 per cent of fourth quarter 2019 ASM capacity).

Air Canada is now providing the following guidance for the full year 2022:

  • Air Canada expects to have increased its full year 2022 ASM capacity by about 148 per cent from 2021 ASM levels (or about 73 per cent of 2019 ASM levels). Air Canada will continue to adjust capacity and take other measures as required, including to account for passenger demand.
  • For 2022, Air Canada expects Adjusted CASM to be about 16 to 18 per cent above 2019 levels.  The variance to prior guidance is mainly due to an increase in wages, salaries and benefits, costs related to a higher number of passengers carried versus prior expectations (which translates into higher passenger service and distribution costs per ASM), as well as the impact of the weakening of the Canadian dollar.
  • For 2022, Air Canada maintains its expectation of an annual EBITDA margin* of about 8 to 11 per cent.

Major Assumptions

Full year assumptions were made by Air Canada in preparing and making forward-looking statements. Among these, Air Canada assumes moderate Canadian GDP growth for 2022. Air Canada also assumes that the Canadian dollar will trade, on average, at C$1.30 per U.S. dollar for the full year 2022 and that the price of jet fuel will average C$1.33 per litre for the full year 2022.

Non-GAAP Financial Measures

Below is a description of certain non-GAAP financial measures 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. Refer to the discussion below for descriptions of non-GAAP financial measures and to the tables accompanying this news release for reconciliations of the non-GAAP financial measures, used in this news release to the most comparable GAAP financial measures.

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. Air Canada excludes special items from EBITDA as these items may distort the analysis of certain business trends and render comparative analysis across periods or to other airlines less meaningful.

EBITDA Margin

EBITDA margin (EBITDA as a percentage of operating revenue) 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.

Operating Margin

Operating margin (operating income (loss) as a percentage of operating revenues) is commonly used in the airline industry and is used by Air Canada as a means to view profitability after operating expenses before interest and taxes.

EBITDA, EBITDA margin, and operating margin are reconciled to GAAP operating income (or loss) as follows:

Third Quarter

(Canadian dollars in millions, except where indicated)

2022

2021

Change

Operating income (loss) – GAAP

$

644

$

(364)

$

1,008

Add back:

Depreciation and amortization

413

400

13

EBITDA (including special items)

$

1,057

$

36

$

1,021

Remove:

Special items

(103)

103

EBITDA (excluding special items)

$

1,057

$

(67)

$

1,124

Operating revenues

$

5,322

$

2,103

$

3,219

Operating margin (%)

12.1

(17.3)

29.4 pp

EBITDA margin (%)

19.9

(3.2)

23.1 pp

Adjusted Cost per Available Seat Mile (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, freighter costs, and special items as these items may distort the analysis of certain business trends and render comparative analysis across periods or to other airlines less meaningful.

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 introduced one Boeing 767 dedicated freighter to its fleet in December 2021 and added a second Boeing 767 freighter in April 2022. In the second quarter of 2022, Air Canada took delivery of two new Boeing 767 freighter aircraft, which are expected to enter service in 2023. Air Canada expects to have a fleet of seven Boeing 767 dedicated freighters by the end of 2023 and expects to add a further three Boeing 767 freighters in 2024 and 2025 as well as two new Boeing 777 freighter aircraft with deliveries expected in 2024.

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 across periods when such costs may vary.

Excluding aircraft fuel expense, the cost of ground packages at Air Canada Vacations, dedicated freighter expenses and special items from operating expenses generally allows for a more meaningful analysis of Air Canada’s operating expense performance and a more meaningful comparison to that of other airlines.

Adjusted CASM is reconciled to GAAP operating expense as follows:

(Canadian dollars in millions, except where indicated)

Third Quarter

2022

2021

Change

Operating expense – GAAP

$

4,678

$

2,467

$

2,211

Adjusted for:

Aircraft fuel

(1,617)

(472)

(1,145)

Ground package costs

(80)

(23)

(57)

Special items

103

(103)

Freighter costs (excluding fuel)

(26)

(26)

Operating expense, adjusted for the above-noted items

$

2,955

$

2,075

$

880

ASMs (millions)

25,562

11,116

130.0 %

Adjusted CASM (cents)

¢

11.56

¢

18.65

¢

(7.09)

Adjusted Pre-tax Income (Loss)

Adjusted pre-tax income (or loss) is used by Air Canada to assess the overall pre-tax financial performance of its business without the effects of foreign exchange gains or losses, net interest relating to employee benefits, gains or losses on financial instruments recorded at fair value, gains or losses on sale and leaseback of assets, gains or losses on disposal of assets, gains or losses on debt settlements and modifications, and special items as these items may distort the analysis of certain business trends and render comparative analysis across periods or to other airlines less meaningful.

Adjusted pre-tax income (or loss) is reconciled to GAAP income (or loss) before income taxes as follows:

(Canadian dollars in millions)

Third Quarter

2022

2021

$ Change

Loss before income taxes – GAAP

$

(504)

$

(679)

$

175

Adjusted for:

Special items

(103)

103

Foreign exchange loss

951

136

815

Net interest relating to employee benefits

(9)

1

(10)

(Gain) loss on financial instruments recorded at fair value

25

(114)

139

(Gain) loss on debt settlements and modifications

(17)

110

(127)

Adjusted pre-tax income (loss)

$

446

$

(649)

$

1,095

Free Cash Flow

Air Canada uses free cash flow as an indicator of the financial strength and performance of its business, indicating the amount of cash Air Canada can generate from operations and after capital expenditures. Free cash flow is calculated as net cash flows from operating activities minus additions to property, equipment, and intangible assets, and is net of proceeds from sale and leaseback transactions.

The table below provides the calculation of free cash flow for Air Canada for the periods indicated.

Third Quarter

(Canadian dollars in millions)

2022

2021

$ Change

Net cash flows from operating activities

$

290

$

305

$

(15)

Additions to property, equipment, and intangible assets, net of
proceeds from sale and leaseback transactions

(333)

(149)

(184)

Free cash flow

$

(43)

$

156

$

(199)

Additional Financial Measures

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.

The table below reflects Air Canada’s net debt balances as at September 30, 2022, and as at December 31, 2021.

(Canadian dollars in millions)

September 30,
2022

December 31,
2021

$ Change

Total long-term debt and lease liabilities

$

15,799

$

15,511

$

288

Current portion of long-term debt and lease liabilities

1,236

1,012

224

Total long-term debt and lease liabilities (including current portion)

17,035

16,523

512

Less cash, cash equivalents and short and long-term investments

(9,206)

(9,570)

364

Net debt

$

7,829

$

6,953

$

876

For further information on Air Canada’s public disclosure file, including Air Canada’s 2021 Annual Information Form dated February 25, 2022, consult SEDAR at www.sedar.com.

Top Copyright Photo: Air Canada Airbus A220-300 (CS300 BD-500-1A11) C-GMZY (msn 55102) LAX (Michael B. Ing). Image: 957888.

Air Canada aircraft photo gallery:

Air Canada unveils comprehensive product experience improvements

  • Upgraded International Economy Class meals including Chef Jérôme Ferrer created entrees, plus new Air Canada Bistro choices
  • Complimentary Wi-Fi for all Premium Rouge customers
  • 25 per cent increase in onboard entertainment content, including Live TV
  • New Acqua di Parma amenity kits and, in Vancouver, Porsche-powered Air Canada Chauffeur Service for Air Canada Signature Class

Air Canada has announced a comprehensive range of new product improvements to elevate the customer experience. The changes will have something for everyone, including upgraded Economy dining, more in-flight entertainment and connectivity options, and enriched Premium offerings.

Beginning in November, customers will see new and restored services in Air Canada Maple Leaf Lounges and in Premium cabins onboard, a new Economy Class dining service with a celebrity chef entree internationally plus fresh, new Bistro choices in North America, and in a first for a Canadian airline, complimentary, high-speed Wi-Fi when travelling Premium Rouge. Starting in 2023, Air Canada will increase its onboard entertainment content by over 25 per cent, and introduce Live TV, Bluetooth audio connectivity and other new features.

Highlights of Air Canada’s new product improvements include:

In-Flight Entertainment and Connectivity

 

Air Canada and Air Canada Rouge offer the fastest inflight internet in Canada, with inflight Wi-Fi available across the entire Air Canada Rouge fleet of 39 aircraft, across all Air Canada wide-body aircraft and on nearly 90 per cent of the overall Air Canada mainline fleet. Wi-Fi installation will be complete across the remainder of narrow-body aircraft in 2023.

Starting Nov. 1, Air Canada becomes the first Canadian airline to begin offering complimentary high-speed Wi-Fi onboard. Customers flying in Premium Rouge will enjoy this benefit, giving them the ability to stream their own entertainment, TV shows and movies, listen to their own music or simply remain connected, replacing the previous tablets offered with pre-loaded in-flight entertainment choices. All Rouge customers can continue to access a large selection of complimentary movies and TV shows through the ‘Entertainment on Demand’ section of the onboard portal.

Beginning 2023, Air Canada will expand its onboard entertainment content by more than 25 per cent, and the airline will introduce new options including Live TV to enable customers to watch sports events and news live. Details for Live TV, as well as additional new features such as Bluetooth audio connectivity and an outside camera feature, will be unveiled soon.

(CNW Group/Air Canada)

International Economy Class Dining

 

Starting Nov. 1, Air Canada will be elevating its International Economy Class dining experience to reflect Canada’s culinary talent and tastes from our global network of destinations. Economy Class dining on all international flights departing Canada is being revamped to feature a hot entree created for Air Canada by renowned Montreal Chef Jérôme Ferrer, a member of Air Canada’s culinary panel. An additional appetizer reflecting destination cuisine is also being presented with all meals, and a separate dessert service will follow.

North America Economy Class Dining

 

To offer a broader range of fresh and healthy dining choices for Economy Class on North America and Sun destination flights, starting Nov. 1, the Air Canada Bistro menu will be refreshed and expanded to include a brioche bagel smoked salmon sandwich, vegan options such as Farro Salad or Spiced chickpea wrap, Canadian snacks such as Good To Go Blondies and Nomz energy bites, in addition to all-time favourite choices such as Montreal smoke meat sandwiches and Air Canada’s popular Fruit & Cheese board.

Premium Cabin Services

 

Starting Nov. 1, Air Canada is fully restoring its premium cabin services both pre-departure and in-flight, with the return of offers to hang coats and jackets, presentation of pre-departure beverages on international flights and hot towels prior to meal services.

(CNW Group/Air Canada)

Premium Cabin Amenities

 

Air Canada will be introducing new amenity kits to premium cabin customers later in November. The new line of amenity kits and totes have been purposefully designed to significantly minimize single-use plastics including the elimination of plastic wrap.

Air Canada Signature Class customers on all international flights will be presented with amenity kits in partnership with Acqua di Parma featuring stylish amenity bags containing Acqua di Parma luxury skincare products plus an oversized eye mask, socks, dental products and 3M earplugs for additional comfort and personal care.

Customers in International Premium Economy and North America Signature Class overnight flights will enjoy reusable amenity totes containing an eye mask, socks and dental products providing for a more refreshed journey.

Airport Lounges
  • Many Maple Leaf Lounges in North America now feature elevated food and beverage offerings. Air Canada works with local wine producers and importers to offer a selection that appeals to a wide, global audience, and varietal selections in each Lounge will be expanded to six wines plus a bubbly and rose (seasonally).

    Air Canada proudly celebrates Canadian wines and the current rotation in select Lounges includes Charles Baker Riesling and Malivoire Farmstead Gamay from the Niagara Region, Ontario, Lake Breeze Pinot Gris and Narrative Red from the Okanagan Valley, British Columbia, and L’Orpailleur from the Eastern Townships, Quebec.

    At all hub airports, Air Canada has resumed its full buffet service, with an increased range of salads and the addition of international delectable dishes such as stir-fry and curries in a contemporary presentation. Montreal Maple Leaf Lounges also feature local legendary classics, including Montreal Fairmount Bagels, Montreal’s famous smoked meat sandwiches, and poutine.

    New priority access lanes have been added to select Maple Leaf Lounges during peak times to offer Super Elite and Business Class customers priority entry.

  • The Air Canada Café at Toronto Pearson now offers a selection of Ontario craft beers, ciders, wine and hot appetizers such as empanadas, arancini and sliders, in addition to the current range of grab-and-go artisanal sandwiches, salads, cold-pressed fresh juices and specialty coffees. The Air Canada Café is located in the domestic terminal at Toronto Pearson and is available to eligible customers.
  • Starting in November, Air Canada Chauffeur Service will be introduced at Vancouver International Airport. Eligible connecting International Air Canada Signature Class customers arriving from within Canada will be met by a Concierge before being whisked away on the tarmac in a plug-in hybrid or fully electric Porsche vehicle to the distinctive Air Canada Signature Suite. Chauffeur Service offers an unsurpassed airport Premium experience in Canada for International Air Canada Signature Class customers connecting through Toronto Pearson and Vancouver International Airports.

Top Copyright Photo: Air Canada Airbus A220-300 (CS300 BD-500-1A11) C-GNGV (msn 55103) IAD (Brian McDonough). Image: 957889.

Air Canada aircraft slide show:

Air Canada to acquire 15 additional Airbus A220-300s

Air Canada today announced that it has converted options for 15 Airbus A220-300 aircraft into firm orders, bringing to 60 the total number of the Canadian-built aircraft it will acquire for its fleet.

Air Canada placed its initial order for the A220, then known as the Bombardier C Series, in 2016, with a firm order for 45 aircraft and 30 options. The first A220 entered service for Air Canada in January 2020 and the airline currently operates a fleet of 31 A220s, with two more deliveries expected in 2022. Six more will be delivered in each of 2024 and 2025, with the 15 additional aircraft scheduled for delivery in 2026. All of Air Canada’s A220s are built in Mirabel.

The modern and fuel-efficient A220 is playing an important role in Air Canada meeting its commitment to reach a goal of net zero emissions from all global operations by 2050. It yields a 25 per cent reduction in fuel consumption per seat, as well as a 25 per cent reduction in CO2 (carbon dioxide) emissions compared to previous generation of aircraft and NOx (nitrogen oxides) emissions that are 50 per cent below CAEP/6 standards. The A220 also delivers a 50% reduction in noise footprint than previous generation aircraft.

The development and manufacturing activities of the Airbus A220 Family are located in Mirabel, Quebec. Airbus currently provides work to more than 2,500 people at its A220 headquarters and manufacturing facilities and is expected to grow to over 3,000 people in the near future.

There are currently 6 A220s produced each month and 14 A220s are expected to be produced monthly as the programme is currently ramping up to reach its maximum production capacity in the middle of the decade.

The A220-300, which seats 137 passengers in a Business and Economy configuration, has accumulated nearly 120,000 flying hours for Air Canada since entering service.

Top Copyright Photo: Air Canada Airbus A220-300 (CS300 BD-500-1A11) C-GVDP (msn 55147) (Turning Red) SEA (Brian Worthington). Image: 959226.

Air Canada aircraft slide show: