Tag Archives: Air Canada

Air Canada becomes first airline to receive IATA recertification for the safe transportation of live animals

Air Canada has become the first airline to be re-certified by the International Air Transport Association (IATA) for the safe transport of live animals by Air Canada Cargo. IATA awarded Air Canada Cargo with the Center of Excellence for Independent Validators for Live Animals Logistics (CEIV Live Animals) recertification following successful completion of the verification process.

Air Canada was the first airline to receive the CEIV Live Animals certification in 2018, a standardized global certification program to improve and reinforce the safety and welfare of animals travelling by air.

As part of the recertification process, a thorough audit was conducted by IATA’s specialists, who reviewed Air Canada Cargo’s live animal transport policies and procedures. Compliance with the IATA Live Animal Regulations (LAR) was fully reviewed as was compliance with protocols like the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

Air Canada aircraft photo gallery (current livery):

Air Canada marks its 85th anniversary, donates CF-TCC to Winnipeg’s Royal Aviation Museum of Western Canada

Air Canada has made this announcement:

In celebration of its 85th anniversary, Air Canada has donated its historic aircraft, an original Lockheed L-10A Electra airplane to Winnipeg’sRoyal Aviation Museum of Western Canada. The iconic aircraft, the first fleet type flown by the carrier, made its final journey as it taxied from the Air Canada hangar at WinnipegInternational Airport to the Museum at a handover ceremony. The airplane will go on permanent public display as an iconic piece of aviation history.

The aircraft, with registration CF-TCC, was one of three purchased by Air Canada’s forerunner, Trans-Canada Air Lines (TCA), in 1937. It was until recently one of only two Lockheed L10-A Electra aircraft still flying in the world.

Named after a bright star in the Pleiades star cluster, the 10A Electra was the pride of the Lockheed Aircraft Corporation. In the 1930s, this twin-engine, all-metal monoplane was the exciting new face of commercial aviation.

The History of CF-TCC

CF-TCC was one of three L-10A aircraft purchased by Trans-Canada Air Lines. The L-10A aircraft type operated TCA’s inaugural flight on September 1, 1937, a 50-minute trip from Vancouver to Seattle carrying mail and two passengers.

TCA had acquired the route plus two Lockheed L‐10A aircraft from Canadian Airways. In that same month, TCA bought three additional Lockheed L‐10A aircraft, brand new, from the Lockheed factory for $73,000 each. These aircraft were dubbed the “Three Sisters” and carried the registrations CF‐TCA, CF‐TCB, and CF‐TCC. The first aircraft, CF‐TCA is now at the Canadian Aviation and Space Museum in Ottawa. CF-TCC last flew in 2018, and was one of two remaining Lockheed L‐10A Electra aircraft still flying in the world.

After being operated by TCA from 1937 to 1939, CF‐TCC was sold to the Department of Transport – Canada. During the next 40 years, the aircraft was sold several times to various private corporations and individuals.

In 1962, CF-TCC was leased by TCA and six of the original TCA pilots operated a commemorative flight across Canada on the occasion of TCAs 25^th Anniversary.

In 1975, a retired Air Canada employee recognized the faded old registration marks on the aircraft while attending an air show in Texas. Air Canada kept track of the aircraft until 1983, at which point the airline purchased back the aircraft, restored it, and flew it during the Air Canada 50th Anniversary celebrations in 1986. At the end of the Fifty stop Canadian tour, CF‐TCC was featured in the Air Canada pavilion during Expo 86 in Vancouver.

Since 1986, the aircraft has been maintained in flying condition. Volunteers and support from the broader aviation community, including from Air Canada Maintenance and Flight Operations, over the years have dedicated thousands of hours of personal time and other contributions into keeping CF‐TCC flying for generations to enjoy. When not flying, the aircraft has been based in the Western Canada Aviation Museum in Winnipeg, Manitoba, or stored in Air Canada’s Winnipeg hangar.

On September 21, 2007, it recreated TCA’s first flight from Vancouver to Seattle, marking Air Canada’s 70^th Anniversary.

In 2012, as part of Air Canada’s 75th Anniversary Celebrations, CF‐TCC made several air show and public appearances, showcasing Air Canada’s heritage and the history of commercial aviation in Canada.

In 2017 to mark the carrier’s 80th anniversary, Air Canada’s Lockheed 10A took to the skies for a cross country tour, beginning with a public appearance at the Royal Aviation Museum in Winnipeg. Along the way, the aircraft made stops in Vancouver, Calgary, Edmonton, Saskatoon, Regina, Winnipeg, Thunder Bay, Sudbury, Toronto, Ottawa, Halifax, Quebec City.

In 2022, on occasion of Air Canada’s 85^th anniversary, the airline’s Lockheed 10A made its final journey to the Royal Aviation Museum of Western Canada in Winnipeg. CF-TCC was taxied to the Museum from Air Canada’s Hangar by the aircraft’s long-time advocates and volunteers, Retired Captain Robert Giguere, Retired Captain Gerry Norberg, Retired Aircraft Maintenance Engineer George Huntington, and Air Canada Aircraft Maintenance Engineer Mike Clarkson.

By the Numbers:

1937 Lockheed L‐10A

Crew: 2 Pilots, 1 Flight
Attendant (known as a
Stewardess in 1937.)

Capacity: 10 passengers

Length: 38 ft 7 in

Wingspan: 55 ft 0 in

Height: 10 ft 1 in

Empty weight: 6,454 lbs

Max Weight: 10,500 lbs

Powerplant:

2 × Pratt & Whitney R‐985

Wasp Junior SB, 450 HP ea.

Cruise speed: 140 knots, 190 mph

Range: 713 miles / 1,147
kilometres

Normal Cruising Altitude:
6,000 – 10,000 ft

Boeing 777-300ER

(Air Canada’s largest aircraft)

Crew: 2 or 4 Pilots, up to 12
flight attendants

Capacity: Up to 450
passengers

Length: 242 ft, 9 in

Wingspan: 213 ft, 3 in

Height: 62 ft, 4 in

Empty weight: 353,600 lbs

Max Weight: 775,000 lbs

Powerplant: 2 GE90-115B
engines

Cruise speed: 484 knots, 557 mph

Range: 9,068 miles / 14,594
kilometres

Normal Cruising Altitude:
35,000 ft

Air Canada aircraft photo gallery:

Air Canada provides an update on its operational improvement initiatives

Air Canada today provided the following update on its operational improvement initiatives implemented in response to the challenges the global airline industry has encountered emerging from the pandemic.

Air Canada Provides Update on its Operational Improvement Initiatives (CNW Group/Air Canada)

“At Air Canada, we know how much our customers value travel and their reliance on us to transport them safely, comfortably and without disruption. This is always our goal and we share with them their disappointment that, coming out of the pandemic, the global industry faltered due to the unprecedented challenges of restarting after a two-year, virtual shutdown,” said Michael Rousseau, President and Chief Executive of Air Canada.

“Earlier this summer, I committed on behalf of everyone at Air Canada that we would do everything possible to restore our company’s industry leading standards of customer care. Among other things, this included innovation at the airport, operational changes and significant schedule adjustments and today these are yielding demonstrable improvement in the metrics that matter most to our customers. While I am very satisfied with the progress to date, and I thank our employees for their unrelenting efforts, we all continue to work hard on behalf of our customers to complete our recovery.”

For the period June 27 to August 14, during which it carried approximately 6.4 million customers, the Air Canada family (including Air Canada, Air Canada Rouge and Air Canada Express), recorded the following operational improvements as it returns to its pre-pandemic customer service levels:

Flight Delays – Comparing the week of June 27 to the week of August 8, there was a 48% reduction or 1,160 fewer flights that took a delay longer than one hour. In addition, flight delays overall are getting shorter. For flights that experienced any delay, the average arrival delay during the week of June 27 was 28 minutes longer than the same week in 2019. As of the week of August 8, this had improved to 12 minutes.

Flight Cancellations – There has been a substantial reduction in the volume of flight cancellations. During the week of August 8, there was a 77% reduction in the number of cancelled flights as compared to the week of June 27. This translates into 960 fewer flights cancelled. Furthermore, flight completion, which is the percentage of all scheduled flights that are not canceled, reached 96.7% during the week of August 8, which was less than one percentage point lower than the same week in 2019. The vast majority of customers experiencing cancellations, often due to weather or other unexpected factors, were able to travel within 24 hours.

Baggage Handling – The strongest area of improvement over this period can be seen in baggage handling, where the airline handles over 650,000 bags per week. During the week of June 27, mishandling rates per 1,000 customers were approximately 2.5 times the same number in 2019. As of the week of August 8, this rate has fully recovered to 2019 levels with a baggage handling success rate of 98%.

Air Canada continues to work with its partners to address the issues disrupting the air transport ecosystem in Canada. Evidence of the success of these joint efforts is a marked decrease in delays and cancellations for airlines, contributing to increased overall stability in Air Canada’s operations. This has resulted in an enhanced customer experience, with better on-time performance, schedule reliability and baggage delivery.

Each day on average, Air Canada currently operates nearly 1,100 flights and regularly carries 135,000 people. Air Canada has been prudently restoring its schedule as it recovers from the effects of COVID-19 and this summer it plans to operate 79 per cent of its pre-pandemic capacity as the industry stabilizes. In support of this, the carrier has recalled employees laid off during the pandemic and continues to hire additional workers. It currently has approximately 34,000 employees compared to 34,700 prior to the pandemic.

Air Canada aircraft photo gallery:

Air Canada reports an operating loss of $253 million, the narrowest quarterly loss since the pandemic began

Air Canada today reported its second quarter 2022 financial results.

“The past three months have been very challenging for our company, our employees, and customers from an operational perspective. The path to recovery from any serious event is rarely straight and easy. I thank our employees for their incredibly hard work, demonstrated professionalism and commitment as we safely transported over 9.1 million customers in the quarter, nearly 8 million more than the second quarter of 2021 or about 70% of total customers carried in the full year 2021,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.

“The industry worldwide is facing unprecedented conditions as it emerges from pandemic-related restrictions. The situation is particularly challenging in Canada, where we have gone from a near two-year shutdown of air travel to rebuilding our capacity back to close to 80 per cent of 2019 levels in just a few months. Despite meticulous planning and projecting, participants involved in the air transport system are facing significant pressure in restarting. We continue to work together to restore the travel experience to expectations and are encouraged by recent improvements.”

“From a financial perspective, we are pleased with our results as we generated $154 million of EBITDA* in the quarter, a significant increase from a negative quarterly EBITDA of $656 million a year ago, and operating revenues neared $4 billion in the quarter, an improvement of about $3.1 billion from the second quarter of 2021. Compared to pre-pandemic levels, 2022 second quarter advance ticket sales reached 94 per cent of those in the same quarter of 2019. In the second quarter, our operating capacity, measured by available seat miles, was 73 per cent of the same quarter in 2019, and despite the lower capacity, passenger revenues were 80 per cent of those generated in the second quarter of 2019, driven by higher yields,” said Mr. Rousseau.

“We expected travel would rebound significantly once restrictions were lifted and prepared accordingly. We entered the peak summer travel period at close to 90 per cent of our pre-pandemic staffing levels, while prudently planning to operate approximately 80 per cent of our pre-pandemic schedule over that period. In the second quarter of 2022, we delivered a load factor of 80.5%, representing a significant improvement from the second quarter of 2021 levels but still declined about four percentage points from the second quarter of 2019. To further support the industry’s recovery efforts and mitigate the short-term impact on customers and employees, we recently took additional steps to flatten peaks and smooth the flow of traffic, by proactively reducing our schedule over July and August.”

“Finally, while many participants play a unique and essential role in the air transport system, we recognize that our customers experience these interconnected efforts as a single journey. We are working closely with our service providers and governments to keep addressing the issues aviation is facing in Canada and globally. We acknowledge the inconveniences and disruptions some of our customers have faced, and we deeply regret this. This is not business as usual for us. We thank our customers for their understanding and the loyalty they are showing to Air Canada in these unprecedented times,” concluded Mr. Rousseau.

Second Quarter 2022 Financial Results

Air Canada reported the following financial results for the second quarter of 2022:

Operating capacity, measured by Available Seat Miles (ASMs) increased about five times from the second quarter of 2021. Capacity in the second quarter was 73 per cent of the second quarter of 2019, in line with projections in Air Canada’s first quarter 2022 earnings release dated April 26, 2022.
Passenger revenues of $3.441 billion increased about eight times from the second quarter of 2021.
Operating revenues of $3.981 billion increased almost five times from the second quarter of 2021.
Operating expenses of $4.234 billion increased $2.264 billion from the second quarter of 2021.
Cost per available seat mile (CASM) decreased to 20.8 cents from the second quarter 2021 CASM of 49.3 cents.
Adjusted cost per available seat mile (Adjusted CASM)* of 13.1 cents compared to second quarter 2021 adjusted CASM of 41.5 cents.
Operating loss of $253 million, an improvement when compared to an operating loss of $1.133 billion in the second quarter of 2021.
EBITDA* (excluding special items) or earnings before interest, taxes, depreciation, and amortization of $154 million, better than the negative EBITDA of $656 million in the second quarter of 2021.
Net loss of $386 million or $1.60 per diluted share compared to a net loss of $1.165 billion or $3.31 per diluted share in the second quarter of 2021.
Cash from operations of $1.077 billion compared to cash used in operations of $1.377 billion in the second quarter of 2021. This improvement of $2.454 billion was driven by better operating results and strong advance ticket sales in the second quarter of 2022, and considers the refund of eligible non-refundable tickets, which amounted to $997 million in the second 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.

Second Quarter 2022 Overview

Easing of Travel Restrictions

During the second quarter of 2022, there was a further easing of travel restrictions by the Government of Canada. These changes included:

Since April 1, 2022, fully vaccinated travellers are no longer required to provide a negative pre-entry COVID-19 test result.
Randomized testing for fully vaccinated travellers was temporarily suspended as of June 11, 2022, and resumed on July 19, 2022 (including for unvaccinated and for randomly selected fully vaccinated travellers) though it is now performed offsite.
Since June 20, 2022, passengers are no longer required to present a proof of vaccination for boarding an aircraft in Canada. The requirements for passengers entering Canada remain unchanged.

Foreign nationals must qualify as fully vaccinated to enter Canada unless they meet an exemption set out in the Orders made under the Quarantine Act. Generally, unvaccinated or partially vaccinated travellers allowed to enter Canada remain subject to the federal requirement to quarantine and take a COVID-19 test prior to arrival, at arrival, and on day eight after arrival.

Route Network and Schedule

In late June 2022, in response to the unprecedented challenges faced by the air transportation system, Air Canada decided to proactively cancel about 8% of its scheduled flights in July and August 2022. This reduction represents about 154 fewer flights per day, on average, primarily on domestic and U.S. transborder routes to and from Toronto and Montreal(at peak times), or a total of about 378 million ASMs.

Fleet

In July 2022, Air Canada finalized an agreement for the purchase of two new Boeing 777 freighter aircraft with deliveries expected in 2024.

Outlook

For the third quarter of 2022, Air Canada plans to increase its ASM capacity by about 131 per cent from the same quarter in 2021 (or approximately 79 per cent of third quarter 2019 ASM capacity).

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

Air Canada plans to increase its full year 2022 ASM capacity by about 150 per cent from 2021 ASM levels (or about 74 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, public health guidelines, and travel restrictions globally, as well as other factors, such as inflation and other cost pressures.
For 2022, Air Canada expects Adjusted CASM to be about 15 to 17 per cent above 2019 levels. The variance to prior guidance is mainly due to an increase in the number of customers carried, which translates into higher passenger service and distribution costs. To a lesser extent, it is also attributable to an increase in wages, salaries and benefits.
For 2022, Air Canada maintains its expectation of an annual EBITDA margin* of about 8 to 11 per cent.

Major Assumptions

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 now assumes that the Canadian dollar will trade, on average, at C$1.28 per U.S. dollar for the full year 2022 and that the price of jet fuel will average C$1.27 per litre for the full year 2022.

Air Canada aircraft photo gallery:

Air Canada and United Airlines expand their relationship for transborder flights

Air Canada and United Airlines today announced a joint business agreement for the Canada-U.S. transborder market, building on their long-standing alliance, that will give more flight options and better flight schedules to customers traveling between the two countries. Customers will be able to connect to 38 codeshare destinations in the U.S. and eight of the most popular cities in Canada — all while enjoying the benefits of the carriers’ MileagePlus® and Aeroplan loyalty programs. The agreement will also strengthen and grow both carriers’ networks and help accelerate their COVID-19 recovery.

Customers who search for flights between the U.S. and Canada on United’s or Air Canada’s websites and apps will find more flight options scheduled at more convenient times. Codeshare between the two carriers will also be expanded and members of both the MileagePlus and Aeroplan programs will have more accrual and redemption options.

In 2019, the U.S.-Canada transborder market was the second largest international passenger air transportation market in the world and the largest international market for both Canada and the U.S., as measured by seats.

Air Canada and United already cooperate in the transborder market, according to the terms of their existing U.S. antitrust immunity. Under the joint business agreement, subject to compliance with U.S. and Canadian regulatory and antitrust requirements, the two airlines will now be able to:

Coordinate their networks and schedules, enabling the carriers to offer customers more choice, including more flights throughout the day and more access to each airline’s seat inventory.
Enhance codeshare on transborder flights, excluding certain U.S. leisure markets and territories. The carriers anticipate customers will be able to connect to 46 transborder codeshare destinations with more than 400 daily frequencies in 2022 – with opportunities to add more codeshare destinations for domestic routes within Canada and the U.S.
Sell seats on each other’s transborder flights and share revenue on flights between hub markets (where regulatory authorities and antitrust requirements allow), allowing the carriers to grow their overall capacities.
Align customer policies for greater consistency and enable the seamless provision of onboard products, establish airport co-locations where available and provide extra value to each carriers’ frequent flyer programs.
Allow the two carriers to work closer together to advance their sustainability objectives.

The implementation of an expanded partnership builds on the existing close cooperation of the two carriers and previously acquired regulatory approvals. United and Air Canada are also founding members of Star Alliance and a transatlantic joint business agreement with the Lufthansa Group.

Air Canada and Emirates form a strategic partnership

Air Canada and Emirates today announced the signing of a strategic partnership agreement that will create more options for customers when travelling on the carriers’ networks while also enhancing the customer experience throughout the journey.

Air Canada and Emirates intend to establish a codeshare relationship later in 2022 that will offer enhanced consumer travel choices for Air Canada customers to travel to the United Arab Emirates and to destinations beyond Dubai. Emirates customers will also enjoy an enhanced travel experience when travelling to Toronto or to key destinations across the Air Canada network. Customers will have the ability to book connecting travel between both airlines’ networks with the ease of a single ticket, seamless connectivity at the carriers’ respective global hubs and baggage transfers to their final destinations.

“As we continue pursuing our strategy of expanding our global reach in response to growing opportunities in VFR markets (Visiting Friends and Relatives) that serve Canada’s large multicultural communities, we are very pleased to form a strategic partnership with Emirates, a highly respected flag carrier of the United Arab Emirates with a hub in the vibrant city of Dubai. This strategic agreement will create network synergies, and Air Canada customers will have additional, convenient options when travelling between Canada and the United Arab Emirates as well as destinations beyond Dubai” said Michael Rousseau, President and Chief Executive Officer at Air Canada. “We look forward to introducing Air Canada codeshare service on key Emirates flights, as well as adding the EK code on select Air Canada flights, and welcoming Emirates customers on our services later this year.”

Sir Tim Clark, President Emirates Airline said: “This is a significant partnership that will enable our customers access to even more destinations in Canada and the Americas, via our Toronto and US gateways. It also opens up many new route combinations for travelers across Emirates’ and Air Canada’s extensive networks in the Americas, the Middle East, Africa and Asia. We are pleased to partner with Air Canada, one of North America’s most established airlines and Canada’s flag carrier and we look forward to jointly progressing on various areas to provide even better customer flight choices and experiences.”

To further enhance the customer experience, the carriers will also establish reciprocal frequent flyer benefits and reciprocal lounge access for qualifying customers. Further details of the partnership and specific codeshare routes will be announced when finalized and will be subject to regulatory approvals and final documentation.

Air Canada to launch seasonal flights to Bangkok and Mumbai for winter 2022-23

Air Canada announced today the expansion of its international network with the addition of Bangkok, Thailand, the carrier’s first non-stop service to South-East Asia. The airline will also be resuming flights to Mumbai, its second destination in the strategic India market. Air Canada’s seasonal service to Bangkok will operate from its trans-Pacific hub at Vancouver International Airport, while the carrier’s Mumbai flights will operate from Torontovia London–Heathrow. Both routes are subject to receiving final government approvals.

The planned service between Vancouver and Bangkok, as well as between Toronto and Mumbai via London–Heathrow, will be operated with Boeing 787 Dreamliner aircraft featuring three cabins of service for customers to choose from, including lie-flat seats in Signature Class, Premium Economy and Economy Class.

Air Canada is bolstering its international winter offering to the South Pacific region with the return of seasonal service from Vancouver to Auckland, New Zealand, and additional flights to Sydney and Brisbane, Australia. Air Canada is also re-establishing international services to South America with the resumption of routes from Montreal and Toronto to Lima, Peru on a seasonal basis.

Flight	From	To	Days of Week	Departs	Arrives	Aircraft	Season
AC65	YVR (Vancouver)	BKK (Bangkok)	Mon, Wed, Fri, Sun	23:00	05:55 +2 days	Boeing 787	Dec. 1 – Apr. 14
AC66	BKK (Bangkok)	YVR (Vancouver)	Tue, Wed, Fri, Sun	08:30	06:35	Boeing 787	Dec. 4 – Apr. 17
AC856	YYZ (Toronto)	LHR (London)	Daily	20:30	08:30 +1 day	Boeing 787	Oct. 29- Mar. 24
	LHR (London)	BOM (Mumbai)	Daily	11:10 +1 day	01:40 +2 days
AC855	BOM (Mumbai)	LHR (London)	Daily	04:50	09:20	Boeing 787	Oct. 31- Mar. 26
	LHR (London)	YYZ (Toronto)	Daily	12:00	14:55

Highlights of Air Canada’s resumed and increased international routes for Winter 2022/23 include:

India:

Toronto-Mumbai	Seasonal daily flights resume Oct. 29 via London Heathrow
Toronto-Delhi	Daily flights remain year-round
Vancouver-Delhi	3 weekly flights resume Oct. 1. Outbound flight includes a technical stop in Dublin for operational purposes.
Montreal-Delhi	3 weekly flights remain year-round

South Pacific:

Vancouver-Auckland	3 flights weekly service resume Nov. 10, increasing to 5 flights weekly from Dec.-Mar.
Vancouver-Brisbane	Increases to 5 weekly flights in Dec.
Vancouver-Sydney	Increases to 10 weekly flights for Dec. and Jan.

Peru:

Toronto-Lima	Seasonal 2 weekly flights resume Nov. 4
Montreal-Lima	Seasonal 2 weekly flights resuming Oct. 30

Air Canada aircraft photo gallery:

Air Canada orders two new Boeing 767-300F freighters

Air Canada will acquire two new Boeing 767-300F freighters from Boeing.

This is in addition to the eight in-house Boeing 767-300s that are currently being converted to freighters.

Top Copyright Photo: The second 767 to be converted. Air Canada Boeing 767-375 ER (F) C-FTCA (msn 24307) YYZ (TMK Photography). Image: 957360.

Air Canada aircraft slide show (historic liveries):

Air Canada aircraft photo gallery (historic liveries):

Air Canada selects Pratt & Whitney GTF™ engines to power up to 44 Airbus A320neo family aircraft

Pratt & Whitney, a division of Raytheon Technologies Corp. and Air Canada have announced the selection of Pratt & Whitney GTF™ engines to power 30 firm and 14 purchase right Airbus A321XLR aircraft. Pratt & Whitney will also provide Air Canada with engine maintenance through an EngineWise® Comprehensive service agreement. The first aircraft is expected to be delivered in the first quarter of 2024.

In 2020, Air Canada became the first airline in Canada to operate the Airbus A220 family and the first in North America to operate A220-300 aircraft. The airline currently operates 28 A220-300 aircraft with an additional 17 on order. Pratt & Whitney has a long history with Air Canada, dating back to the airline’s first aircraft, a Lockheed Model 10 Electra with Pratt & Whitney Wasp engines. Prior to the A220, Pratt & Whitney powered Air Canada’s fleet of Boeing 767 aircraft.

The Pratt & Whitney GTF™ engine is the only geared propulsion system delivering industry-leading sustainability benefits, mature dispatch reliability and world-class operating costs. GTF engines for the Airbus A320neo family reduce fuel consumption and carbon emissions by 16 percent, regulated emissions by 50 percent and noise footprint by 75 percent. The engine’s revolutionary geared fan architecture is the foundation for more sustainable aviation technologies in the decades ahead, with advancements like the Pratt & Whitney GTF Advantage™ engine and beyond.

Air Canada aircraft photo gallery (current livery):

Air Canada reduces its first quarter 2022 loss to $550 million

First quarter operating revenues of $2.573 billion, or about three-and-a-half times first quarter 2021 operating revenues
First quarter 2022 operating loss of $550 million compared to an operating loss of $1.049 billion in the first quarter of 2021
Advance ticket sales grew about $1.2 billion in the first quarter of 2022 from year end 2021
Airbus A321XLR order increased by four to 30 aircraft with IAE to supply related PW1100G-JM engines

Air Canada today reported its first quarter 2022 financial results.

“The substantial year-over-year improvement in Air Canada’s first quarter results is clear evidence that a recovery is underway. Our strong improvement is a testament to our employees, and I thank them for their hard work taking care of our customers throughout more than two years of a global pandemic. Now, our employees are demonstrating this same level of determination, commitment and passion in executing on our recovery strategy,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.

“The year began with weakness brought on by the Omicron variant and travel restrictions. However, we quickly rebounded in March with passenger volumes exceeding the strong December levels and passenger ticket sales in March 2022 over 90 per cent of March 2019 levels, a leading indicator to much stronger 2022 second and third quarter results. For the quarter, Air Canada had operating revenues of $2.573 billion, more than triple that of the same quarter in the prior year. This was accompanied by a strict cost discipline that reduced adjusted CASM* by over six per cent from the fourth quarter of 2021. Quarterly EBITDA*, while a negative $143 million, improved $620 million over last year and we ended the quarter with $10.162 billion in unrestricted liquidity, close to 2021 year-end levels.

“In anticipation of our recovery, Air Canada has kept the course with key long-term projects to increase and diversify revenue and lower costs. One such program is the expansion of Air Canada Cargo, with quarterly revenue up 42 per cent to $398 million from the first quarter of 2021, and now further expanded with the addition of two new Boeing 767-300 freighters to be delivered in 2022. The renegotiation of key engine maintenance contracts completed in the quarter, will also yield savings over the remaining life of the contracts. Aeroplan air redemption bookings in the quarter exceeded those of the same quarter in 2019 by 19 per cent. The relaunched program saw the highest new member acquisitions and redemptions in a quarter, and generated third-party gross billings exceeding first quarter 2019 levels by 21 per cent,” said Mr. Rousseau.

“Air Canada is rapidly adapting for the post-pandemic world. We are doing our part by contributing to the travel of Ukrainians to Canada, with a substantial donation of 100 million Aeroplan points. We have also advanced our ESG goals in the quarter by announcing an order for 26 fuel-efficient Airbus A321XLR aircraft, which we have now increased to 30 aircraft. As well, we have recently entered into a long-term agreement with International Aero Engines, LLC (Pratt & Whitney) for the selection of the PW1100G-JM engines, spare engines and related maintenance services for these new aircraft. We are responding to the evolving competitive landscape through our Rise Higher strategy to elevate all aspects of our business, particularly as it relates to the customer experience. Given pent-up travel demand, the demonstrated loyalty of our customers, and the expected further removal of travel-related government restrictions, Air Canada anticipates its recovery will gain momentum through the balance of 2022 and beyond,” said Mr. Rousseau.

First Quarter 2022 Financial Results

In the first quarter of 2022, Air Canada’s operating capacity, measured by Available Seat Miles (ASMs) increased about 3.4 times from the first quarter of 2021. When compared to the first quarter of 2019, ASM capacity represented a decline of 45 per cent, which was generally in line with the capacity expectations projected in Air Canada’s fourth quarter 2021 earnings release dated February 18, 2022.
First quarter 2022 passenger revenues of $1.917 billion increased nearly five times from the first quarter of 2021.
First quarter 2022 operating revenues of $2.573 billion increased about three-and-a-half times from the first quarter of 2021.
First quarter 2022 total operating expenses of $3.123 billion increased $1.345 billion or 76 per cent from the first quarter of 2021.
First quarter 2022 cost per available seat mile (CASM) of 21.8 cents compared to first quarter 2021 CASM of 42.2 cents.
First quarter 2022 adjusted cost per available seat mile* (adjusted CASM) of 15.6 cents compared to first quarter 2021 adjusted CASM of 40.4 cents.
First quarter 2022 EBITDA (excluding special items)* or earnings before interest, taxes, depreciation and amortization of negative $143 million compared to negative EBITDA of $763 million in the first quarter of 2021.
First quarter 2022 net loss of $974 million or $2.72 per diluted share compared to a net loss of $1.304 billion or $3.90 per diluted share in the first quarter of 2021.
First quarter 2022 cash from operations was $335 million compared to cash used in operations of $888 million in the first quarter of 2021, an improvement of $1,223 million driven by improved operating results and strong advance ticket sales. Free cash flow of $59 million in the first quarter of 2022 improved by $1,221 million when compared to the same period in 2021.

* EBITDA, EBITDA margin, adjusted CASM and free cash flow (discussed further below) are non-GAAP financial measures or non-GAAP ratios. 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’s non-GAAP financial measures and non-GAAP ratios and for a reconciliation of Air Canada non-GAAP measures to the most comparable GAAP financial measure.

First Quarter 2022 Overview

Over the quarter, and until February 28, 2022, all travellers, regardless of vaccination status, were required to provide a negative pre-entry COVID-19 PCR test result taken within 72 hours of departure or a proof of a positive test result received in the previous 11 to 180 days. On February 15, 2022, the Government of Canada announced changes to certain travel restrictions for fully vaccinated travellers. Refer to section 4 “Overview & First Quarter 2022 Highlights” of Air Canada’s First Quarter 2022 MD&A for additional information on such changes.

On March 17, 2022, the Government of Canada announced additional changes that came into effect on April 1, 2022, allowing for fully vaccinated travellers to no longer be required to provide a pre-entry COVID-19 test result to enter Canada by air, land or water. Foreign nationals who do not meet the requirements to be considered fully vaccinated are not able to enter Canada unless they meet an exemption set out in the Orders made under the Quarantine Act. Unvaccinated or partially vaccinated travellers allowed to enter Canada remain subject to the federal requirement to quarantine and take a COVID-19 PCR test at the time of arrival and on day eight after arrival.

Route Network and Schedule

Since the onset of the pandemic, Air Canada has actively managed its ASM capacity based on prevailing market trends and travel demand. In January 2022, in response to the emergence of the Omicron variant and the associated short-term decline in demand, Air Canada suspended flights to certain Caribbean destinations from January 24 to April 30, 2022.

In February 2022, Air Canada made the following announcements (adding to the schedule updates announced in the second half of 2021):

An expansion of its North American network for Summer 2022 that includes the launch of new service on four transborder and three domestic routes, as well as the restoration of 41 North American routes. Air Canada plans to operate to 51 Canadian and 46 U.S airports this summer and offer customers the largest network and most travel options of any Canadian carrier.
Expanded Summer 2022 international schedule with 34 routes relaunching across the Atlantic and Pacific.

Further information on the schedule updates announced in 2021 can be found in section 4 “2021 Highlights” of Air Canada’s 2021 MD&A.

Outlook

For the second quarter of 2022, Air Canada plans to increase its ASM capacity by approximately 414 per cent from the same quarter in 2021 (or about 73 per cent of second quarter 2019 ASM capacity).

Air Canada is reiterating the following guidance for the full year 2022 provided in its news release dated March 30, 2022:

Air Canada plans to increase its full year 2022 ASM capacity by about 150 per cent from 2021 ASM levels (or about 75 per cent of 2019 ASM levels). Air Canadawill continue to adjust capacity and take other measures as required, including to account for passenger demand, public health guidelines, and travel restrictions globally, as well as other factors, such as inflation and other cost pressures.
For 2022, Air Canada expects adjusted cost per available seat mile (CASM)* to remain about 13 to 15 per cent above 2019 levels.
For 2022, Air Canada expects an annual EBITDA margin* of about 8 to 11 per cent.

Major Assumptions

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 expects that the Canadian dollar will trade, on average, at C$1.26 per U.S. dollar for the full year 2022 and that the price of jet fuel will average $1.24 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 Canadaexcludes 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.