Airlink has made this announcement:

For the second time this year, Air Canada and the Air Canada Foundation have provided humanitarian assistance to communities in British Columbia by donating flights to disaster response nonprofit Airlink.

Airlink facilitates free and subsidized transport to a network of over 130 disaster response nonprofit organizations, such as Team Rubicon Canada, that then respond to disasters all over the world. This new donation of flights by Air Canada and the Air Canada Foundation will enable Airlink to support the movement of 30 Team Rubicon Canada volunteers to Fraser Valley, B.C. where they will provide recovery relief to communities impacted by recent flooding and landslides.

“Following heat domes and heartbreaking wildfire destruction just months earlier, British Columbia faced another extreme climate event this year, with devastating flooding and landslides that affected thousands of people as well as the province’s highway transportation network.  The importance of continuing to help communities in need remains one of the Air Canada Foundation’s priorities. We are proud to transport Airlink and Team Rubicon Canada’s experts, whose important work on the ground will help our communities recover and rebuild” said Valerie Durand, Spokesperson for the Air Canada Foundation.

Prompting a state of emergency in November, the unprecedented flooding in British Columbia and the Pacific Northwest of the U.S., resulted in nearly $450 million in damage and 5 reported deaths. The flooding came on the heels of the summer 2021 wildfires, which left an altered terrain more susceptible to increased flooding.

“Sadly, many people aren’t aware of the magnitude of the flooding in British Columbia. This is a prime example of how Airlink is able to support critical missions of various sizes in response to disasters that might not attract the attention or support they deserve because they don’t feature in the news cycle. We are thankful to have such strong partners like Air Canada, the Air Canada Foundation, and Team Rubicon Canada, said Steven J. Smith, President, and CEO of Airlink.

The Team Rubicon Canada cohort, which is led by veterans of the military, local authorities and residents, first responders, and skilled emergency management volunteers, will be cleaning out flooded homes and removing debris in affected communities in the electoral areas.

Elsewhere:

(CNW Group/Air Canada)

Air Canada’s first dedicated Boeing 767-300ER freighter aircraft was put into service today and operated its inaugural flight from Toronto to Vancouver. Originally scheduled to first fly to Frankfurt, Air Canada Cargo deployed the aircraft early to provide capacity where needed.

Prior to its  first freighter operation, Air Canada and Air Canada Cargo had boosted cargo capacity by 586 tons into Vancouver from Toronto, Montreal and Calgary in November to allow for the transport of more critical supplies to and from British Columbia.

Freighters part of Air Canada Cargo’s growth strategy

The first freighter aircraft is currently planned to operate between Toronto and Frankfurt for the remainder of 2021, in addition to the flights to Vancouver. In 2022, primarily out of Toronto, it will also serve Miami, Quito, Lima, Mexico City and Guadalajara. With additional airports including Madrid, Halifax and St. John’s planned when the second aircraft is delivered in the first half of 2022.

The Boeing 767-300ER freighters will allow Air Canada Cargo to offer five different main deck configurations, increasing the overall cargo capacity of each aircraft to nearly 58 tonnes or 438 cubic meters, with approximately 75 percent of this capacity on the main deck.

The addition of freighter aircraft to Air Canada’s fleet will allow Air Canada Cargo to provide consistent capacity on key air cargo routes, which will facilitate the movement of goods globally. The freighters will allow Air Canada Cargo to increase its capabilities to transport goods such as automotive and aerospace parts, oil and gas equipment, pharmaceuticals, perishables, as well as handling the growing demand for fast, reliable shipment of e-commerce goods.

Given the immediate demand for cargo capacity, the first freighter entered service without its final livery. At a later date, it will be painted in an Air Canada Cargo variation of the Air Canada livery introduced in 2017.

Since March 2020, Air Canada has operated more than 13,000 all-cargo flights globally using its wide-body passenger aircraft as well as certain temporarily modified Boeing 777 and Airbus A330 aircraft, which have additional available cargo space due to the removal of seats from the passenger cabin.

Air Canada announced today that it has significantly increased cargo capacity into and out of Vancouver between November 21 and 30 from its hubs in Toronto, Montreal and Calgary as it works to ensure that the vital economic supply chain links in British Columbia are maintained following the impacts of last week’s flooding. In total, Air Canada is adding 586 tonnes of cargo capacity, representing 3,223 cubic meters to support B.C.’s economic supply chain and the needs of its communities. The additional capacity is equivalent in weight to approximately 860 adult moose.

“The economic supply chain is vital, and to help support the urgent transport of goods into and out of British Columbia, we have increased capacity to our YVR hub by using the flexibility of Air Canada’s fleet to reschedule 28 passenger flights from narrow-body aircraft to be operated with wide-body Boeing 787 Dreamliners, Boeing 777, and Airbus A330-300 aircraft. These changes will allow an additional 282 tonnes of goods to be moved across the country on our scheduled passenger flights,” said Jason Berry, Vice President, Cargo, at Air Canada.

“Additionally, Air Canada Cargo will operate an additional 13 all-cargo flights between our Toronto, Montreal and Calgary cargo hubs and YVR using widebody aircraft, providing approximately 304 tonnes of additional capacity. These aircraft will help move mail and perishables such as seafood, as well as automotive parts and other industrial goods,” concluded Mr. Berry.

Air Canada is also working with its regional partner Jazz Aviation to provide additional regional cargo capacity by temporarily converting an Air Canada Express De Havilland Dash 8-400 from its normal passenger configuration into a special freighter configuration. This Dash 8-400 Simplified Package Freighter operated by Jazz can carry a total of 18,000 lbs. (8,165 kg) of cargo and will be deployed to transport critical goods, as well as consumer and industrial goods and will be in service as early as this week.

Last week, as the impact of the devastating floods became apparent, Air Canada quickly added capacity to the Air Canada Cargo network by substituting larger widebody aircraft on 14 passenger flights into Vancouver.

Additional capacity added for passengers

In addition to the extra cargo capacity, Air Canada had also increased the number of seats available for customers in Kelowna and Kamloops since November 17, adding approximately 1,500 seats into both communities by utilizing larger aircraft on routes. This enabled people affected by the highway closures to fly into and out from these airports, and through the cargo capacity of these passenger aircraft, also allowed for the important transport of emergency medical supplies into these regions.

Air Canada continues to monitor the situation in British Columbia very closely and will adjust its passenger and cargo schedule accordingly.

Air Canada and Carbon Engineering Ltd. have announced a Memorandum of Understanding (MOU) to identify potential opportunities in how CE’s proprietary Direct Air Capture (DAC) technology, which captures carbon dioxide (CO₂) from the atmosphere, can advance aviation decarbonization. The two Canadian companies plan to explore potential cooperation activities in sustainable aviation fuels (SAF), permanent carbon dioxide removal and innovation, including opportunities for Air Canada to purchase SAF utilizing CE’s technologies.

CE’s DAC technology captures CO₂ directly out of the atmosphere and can be used to support decarbonization in two significant and complementary ways:

1. When combined with secure geologic storage, it can permanently remove vast amounts of CO₂ from the atmosphere, providing a tool to eliminate any CO₂ emission, from any location and at any moment in time.
2. Additionally, through integration with CE’s AIR TO FUELS^™ technology, DAC can be used to produce ultra-low carbon transportation fuels, such as SAF, by combining atmospheric CO₂ with clean hydrogen.

As part of its climate targets to reach a goal of net-zero greenhouse gas emissions throughout its global operations by 2050, Air Canada has committed to invest in a variety of alternative fuel and carbon reduction solutions. Air Canada currently reports its carbon footprint, targets and climate protection strategy through the CDP and, as of 2022, will also be reporting through the Task Force on Climate-related Financial Disclosures framework.

Air Canada issued this statement:

“I want to clarify a statement I made during my exchange with the media yesterday. As I indicated in my comments to the media, I would like to be able to speak French. I want to make it clear that in no way did I mean to show disrespect for Quebecers and francophones across the country. I apologize to those who were offended by my remarks. I pledge today to improve my French, an official language of Canada and the common language of Québec, while tackling the serious commercial challenges facing Air Canada as we move from surviving the pandemic to rebuilding to normalcy. The fact that this iconic company is headquartered in Montreal is a source of pride for me and our entire executive team. I reiterate Air Canada’s commitment to show respect for French and, as a leader, I will set the tone,” said Michael Rousseau, President and Chief Executive Officer at Air Canada.

More on this story:

https://ca.news.yahoo.com/air-canada-ceo-sparks-anger-001628765.html

Air Canada reported third quarter 2021 financial results.

• Operating revenues of $2.103 billion, representing almost three times the operating revenues of $757 million in the third quarter of 2020
• Negative EBITDA⁽¹⁾ (earnings before interest, taxes, depreciation, and amortization), excluding special items, of $67 million compared to negative EBITDA (excluding special items) of $554 million in the same quarter of 2020
• Operating loss of $364 million, compared to an operating loss of $785 million in the third quarter of 2020
• Net cash flow⁽¹⁾ of $153 million, approximately $520 million higher than the midpoint of the net cash burn guidance provided for the quarter
• Record cargo revenues, surpassing the billion-dollar mark year-to-date
• Unrestricted liquidity of about $14.4 billion at September 30, 2021

“We are encouraged by the favorable revenue and traffic trends in the third quarter, with strong increases in key passenger geographic segments, a record cargo performance and significant improvements in both Air Canada Vacations and Aeroplan. The combination of these factors, along with effective cost controls, resulted in net cash flow of $153 million for the quarter, materially better than expected and as compared to the third quarter of 2020,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.

“Another major accomplishment was the series of financing transactions completed in August, allowing us to lower our cost of borrowing, extend the maturities of our corporate debt, and raise gross proceeds of about $7.1 billion.  As a result, at the end of the third quarter of 2021, Air Canada had about $9.5 billion in available liquidity on its balance sheet. This strong liquidity position and the confidence it conveys is a core element of our long-term prospects as we rebuild our airline. We also have about $4.9 billion available under undrawn facilities.

“Since the start of the year we have recalled more than 10,000 employees. We have expanded services to the U.S., and have launched new routes, such as to Cairo. We also announced expansions of our services to India and South America as well as the return next summer of popular seasonal destinations such as Barcelona, Venice, Nice and Reykjavik. To support our network restoration, we have reversed our decision to cancel two Airbus A220 aircraft orders and are now accelerating deliveries of new Boeing 737 MAX aircraft. For our customers, we are pleased to bring back amenities such as onboard meal service and Maple Leaf Lounges.

“I want to express my continuing gratitude to all our employees for their incredible efforts, resilience, and teamwork throughout the challenging past 20 months, most recently as we have worked hard to restart a very complex eco-system with our many partners. I am pleased these efforts were globally recognized when our employees recently won Best Airline Staff in Canada and Best Airline Staff in North America in the prestigious 2021 Skytrax World Airline Awards. Their unstoppable energy, purpose and steadfast optimism have lifted and inspired us all as we navigate towards brighter skies ahead,” said Mr. Rousseau.

Third Quarter Updates

Capacity and Route Network

Since the onset of the pandemic, Air Canada has actively managed its ASM capacity to account for passenger demand, prevailing market trends, public health guidelines and travel restrictions globally. In the third quarter of 2021, Air Canada increased its ASM capacity by 87 per cent compared to the third quarter of 2020 (a reduction of about 66 per cent when compared to the third quarter of 2019), generally in line with expectations discussed in Air Canada’s second quarter news release dated July 23, 2021.

Over the third quarter of 2021, and following the June 15, 2021 announcement of its peak domestic summer schedule serving a total of 50 Canadian destinations from coast to coast, Air Canada announced a series of network developments, including:

• On July 6, 2021, Air Canada unveiled new details for its international flight schedule for the summer of 2021 which included the resumption of 17 routes and 11 destinations across the world from its hubs.
• Following the Government of Canada’s announcement to reduce travel restrictions for citizens and permanent residents of the U.S., on July 19, 2021, Air Canada announced its U.S. transborder summer schedule, including 55 routes and 34 destinations in the U.S., with up to 220 daily flights between the U.S. and Canada.
• On July 29, 2021, Air Canada announced two new winter services departing from Quebec City to Orlando and Fort Lauderdale. Air Canada also announced it would be resuming its international service to Punta Cana and Cancun, from Quebec City, later in the fall.
• On September 7, 2021, Air Canada Rouge resumed service with flights operating between Toronto and Las Vegas, Orlando, and Regina, with other destinations introduced in September, including Cancun and Tampa.
• On September 8, 2021, Air Canada resumed service between Montreal and Toronto Island Airport with five daily return flights.
• On September 27, 2021, Air Canada resumed its non-stop flights to and from Delhi, following the lifting of the Government of Canada restrictions on non-stop flights from India.

In October 2021, Air Canada announced additional updates to its schedule. These announcements include:

• Two new seasonal routes connecting Quebec City with Vancouver and with Calgary. These routes are scheduled to begin in May 2022.
• Increase in service to several key South American destinations. Year-round service to São Paulo, Brazil from Montreal will resume on December 8, 2021. Direct service from Montreal to Bogota, Colombia is set to start on December 2, 2021, while flights from Toronto to Bogota will increase to four per week as of November 7, 2021. Service between Toronto and Santiago, Chile is scheduled to resume in January 2022. Air Canada will serve Buenos Aires, Argentina, with flights offered from both Toronto and Montreal via São Paulo.
• New seasonal service between Toronto and Santo Domingo in the Dominican Republic is scheduled to begin on December 16, 2021.
• Planned summer schedule for Europe, Africa, the Middle East and India. In addition to its established year-round services, Air Canada announced its return to key summer seasonal destinations such as Barcelona, Venice, Nice, Manchester, Edinburgh, and Reykjavik.
• Expansion of services to India with increased frequency to Delhi from Toronto, since October 15, 2021, and a new year-round service to Delhi from Montreal that started on October 31, 2021.
• New daily service between Toronto Island and Ottawa which started on October 31, 2021.

Financing and Liquidity

In the third quarter of 2021, Air Canada completed a series of financing transactions generating gross proceeds of about $7.1 billion. These financing transactions provide substantial liquidity to Air Canada and extend debt maturities out until near the end of the decade. Additional information relating to these transactions is available in Section 4 entitled “Overview” of Air Canada’s Third Quarter 2021 Management’s Discussion and Analysis of Results of Operations and Financial Condition.

Fleet

In the third quarter of 2021, Air Canada elected to proceed with the purchase of an additional two Airbus A220-300 aircraft for delivery in 2024. These two aircraft are part of the 12 Airbus A220-300 aircraft that Air Canada had previously determined it would not be purchasing under an amendment to the purchase agreement concluded with Airbus Canada Limited Partnership in November 2020. Subsequently, in October 2021, Air Canada reached an agreement with Boeing to accelerate the delivery of four Boeing 737 MAX aircraft into the fourth quarter of 2021, for a total of seven deliveries in 2021. The remaining nine Boeing 737 MAX aircraft are now expected to be delivered by the end of the second quarter of 2022, reaching a total of forty Boeing 737 MAX aircraft in the narrow-body fleet.

Third Quarter Financial Summary

Air Canada recorded a net loss of $640 million or $1.79 per diluted share in the third quarter of 2021 compared to a net loss of $685 million or $2.31 per diluted share in the third quarter of 2020. The net loss in the third quarter of 2021 included a foreign exchange loss of $136 million, as compared to a foreign exchange gain of $88 million recorded during the third quarter of 2020.

When compared to the third quarter of 2020, EBITDA improved $487 million to negative EBITDA, excluding special items, of $67 million in the third quarter of 2021. The last two months of the third quarter of 2021 each generated positive EBITDA.

In the third quarter of 2021, net cash generation of $153 million was better than management’s expectation of a net cash burn of between $280-to-$460 million, discussed in Air Canada’s July 23, 2021 news release. Over the third quarter, Air Canada saw the benefit of strong advance ticket sales and a significant increase in passengers carried versus both the second quarter of 2021 and the third quarter of 2020. This, along with its strong liquidity position, gives Air Canada added confidence that it is well-positioned to emerge from the pandemic, and to continue building back its network and investing in the future.

As at September 30, 2021, Air Canada’s unrestricted liquidity was approximately $14.4 billion consisting of roughly $9.5 billion in cash, cash equivalents, short- and long-term investments and about $4.9 billion available in undrawn funds from credit facilities.

Outlook

Air Canada plans to increase its fourth quarter 2021 ASM capacity by about 135 per cent from the same quarter in 2020. When compared to the same period in 2019, fourth quarter ASM capacity is expected to decrease by about 47 per cent.

In light of the transition towards a post-pandemic environment and consistent with industry practice, Air Canada will not be providing net cash burn guidance going forward.

Air Canada will continue to adjust capacity and take other measures as required, including so as to account for passenger demand, public health guidelines, and travel restrictions globally, as well as other factors, such as inflation and other cost pressures.

⁽¹⁾ Non-GAAP 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. Readers are advised to review the section entitled “Non-GAAP Financial Measures” in Air Canada’s Third Quarter 2021 MD&A for a further discussion of such non-GAAP measures and a reconciliation of such measures to Canadian GAAP.

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. 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 to other airlines less meaningful. Refer to the “Non-GAAP Financial Measures” section in Air Canada’s Third Quarter 2021 MD&A for a discussion of special items relating to the third quarter of 2021.

Net cash burn is commonly used in the airline industry and is used by Air Canada as a measure of cash used to maintain operations, support capital expenditures, and settle normal debt repayments, all before the net impact of new financing proceeds. Net cash burn is defined as net cash flows from operating, financing for aircraft deliveries, and investing activities. Excluded are proceeds from non-aircraft financings, lump sum debt maturities made where Air Canada has refinanced or replaced the amount, and proceeds from sale and leaseback transactions. Net cash burn also excludes movements between cash and short- and long-term investments, and refunds for non-refundable fares being processed for flights impacted by the COVID-19 pandemic. Such refunds are eligible for draws under the Government of Canada $1.404 billion refunds credit facility and, therefore, are generally cash neutral to Air Canada’s liquidity position (up to the $1.404 billion limit of the facility) and improve net working capital.

Air Canada said today that it has enacted a Return to the Workplace Plan to transition employees working remotely safely back into the workplace, beginning November 15. The plan, developed in compliance with Public Health Agency of Canada guidelines, uses a hybrid approach combining on-site and remote work options to give employees flexibility and confidence as they return to their pre-pandemic work routines.

“While frontline employees at Air Canada have attended work running the operation throughout the pandemic, for which I thank and commend them, since March 2020 a significant number have worked remotely pursuant to Federal Public Health directives. Now, with caseloads falling nationally, Air Canada’s mandatory workplace vaccination policy, and other company health measures, it is possible for people to begin a structured return to the office and safely resume a more normal work life. Our plan takes a balanced approach, meeting the needs of those eager to work again in-person with their colleagues and others who may prefer to continue, for personal or professional reasons, working remotely certain days of the week,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.

“For individuals, companies or any organization to achieve their full potential requires personal connections and interactions. This makes the return of Canadians to the workplace a necessary step in the recovery of our society and economy from the pandemic’s isolating effects. As a country, we can and must begin to resume our pre-pandemic routines, especially as our high vaccination rates, effective public health policies and the sacrifices made by all of us to beat COVID-19 have created the conditions to do so safely.”

Beginning November 15, those Air Canada employees who are presently working off-site will start a graduated return to the workplace, with options to continue working set days remotely. To ensure the health and safety of employees in the workplace:

• A mandatory vaccination policy requires all active employees to be fully vaccinated;
• All visitors and anyone entering company buildings are required to be fully vaccinated;
• Employees will be strongly encouraged to wear a face mask whenever outside of their personal workspaces or when interacting with others;
• Physical distancing is required where practical;
• Home screening programs continue to be offered and their use encouraged;
• Hand sanitizer and disinfection products will continue to be readily available.

Air Canada today announced it is a founding member of, and the first Canadian carrier to join, the Aviation Climate Taskforce (ACT), formed to tackle the challenge of rising CO2 emissions from commercial aviation. The new, non-profit organization, made up of ten global airlines and the Boston Consulting Group, was established to accelerate research and advance innovation related to emerging decarbonization technologies, including through the development of sustainable aviation fuels.

“Air Canada is highly focused on its environmental performance and has committed to reduce its footprint further by setting a target of net zero emissions by 2050. Combatting global warming requires a global response, and we are pleased to be the first Canadian airline to join the Aviation Climate Taskforce. As a founding member, we will work with other global carriers and invest in emerging technologies to advance the decarbonization of our sector and build a long-term, sustainable aviation industry,” said Michael Rousseau, President and Chief Executive Officer at Air Canada.

As part of its climate targets to reach a goal of net-zero greenhouse gas emissions throughout its global operations by 2050, Air Canada has committed to invest up to $50 million in alternative fuels and carbon reductions, a portion of which will be invested through ACT. For more information on Air Canada’s environmental programs please visit: https://leaveless.aircanada.com/ca/en/index.html#!/.

Read the Aviation Climate Taskforce’s press release here: https://www.prnewswire.com/news-releases/aviation-leaders-to-tackle-co2-emission-challenge-301410532.html.

About the Aviation Climate Taskforce

The Aviation Climate Taskforce (ACT) is a non-profit coalition focused on accelerating breakthroughs in emerging technology to drive the decarbonization of the aviation sector. ACT will support the advancement of emerging technologies through two key pillars, an Innovation Network and Collaboration Forum. The Innovation Network will use proven tools to pinpoint collaboration opportunities across the ecosystem, and provide grant funding as well as utilize challenge platforms to tackle critical barriers from novel angels. The Collaboration Forum will identify other ways to expedite the adoption and scale-up of next generation technologies. ACT was founded in 2021 by leading global airlines in conjunction with The Boston Consulting Group. ACT welcomes additional airlines and other members of the aviation ecosystem to join us.