Tag Archives: Airbus A220-300 (CS300 BD-500-1A11)

Delta Air Lines firms order for 12 additional Airbus A220 aircraft

Delta Air Lines has firmed up an order for a dozen more Airbus A220-300 aircraft, bringing the airline’s total firm order for A220s to 119 aircraft – 45 A220-100s and 74 A220-300s.

Throughout the years, Delta has reordered the A220 four times and is today the largest A220 customer and operator.

Delta took delivery of its first Airbus A220 in October 2018, and was the first U.S. carrier to operate the aircraft type. Delta currently owns a fleet of 415 Airbus aircraft, including 59 A220 aircraft, 266 A320 Family aircraft, 62 A330s and 28 A350-900 aircraft.

With 246 A220s delivered to 16 airlines operating on four continents, the A220 is the optimal aircraft to offer operational flexibility for both regional as well as long-distance routes. To date, more than 70 million passengers have enjoyed the A220. The fleet is currently flying on over 825 routes and 325 destinations worldwide. As of the end of December 2022, nearly 30 customers have ordered close to 800 A220 aircraft – confirming its leading position in the small single-aisle market.

Top Copyright Photo: Delta Air Lines Airbus A220-300 (CS300 BD-500-1A11) N312DU (msn 55170) LAX (Michael B. Ing). Image: 959910.

Delta Air Lines aircraft photo gallery (Airbus):

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 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 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:

ITA Airways puts its first two Airbus A220-300s into revenue service

Ita Airways took delivery of its first Airbus A220-300 (EI-HHI) on September 2, 2022.

After crew training, the new type is now in revenue service. First revenue flight was on October 16 as domestic flight AZ1383 from Rome to Genoa with EI-HHI.

The first international cheduled service was also on October 16, 2022 from Rome-Fiumicino to Geneva and Zurich. The first international flight went from Rome to Geneva and return and in the early evening to Zurich (top) with EI-HHJ.

Munich will come on line on October 30, 2022.

The airline also stated:

The newcomer will be operational between Rome, Milan Linate, Genoa, Turin, Naples, Geneva, Zurich and Munich.

Both aircraft wear “Born to be Sustainable” sub-titles.

Top Copyright Photo (all others by the airline): ITA Airways Airbus A220-300 (CS300 BD-500-1A11) EI-HHJ (msn 55176) (Born to be Sustainable) ZRH (Rolf Wallner). Image: 959146.

ITA AIrways aircraft photo gallery:

Photo: Air Canada Airbus A220-300 (CS300 BD-500-1A11) C-GVDP (msn 55147) (Turning Red) YUL (Gilbert Hechema). Image: 956795.

2022 "Disney Pixar Turning Red" movie promotional livery

Copyright Photo: Air Canada Airbus A220-300 (CS300 BD-500-1A11) C-GVDP (msn 55147) (Turning Red) YUL (Gilbert Hechema). Image: 956795.

JetBlue accelerates transition to Sustainable Aviation Fuel (SAF)

"Rob Dewar", 1st A220, delivered December 31, 2020, in service April 26, 2021 BOS-TPA

JetBlue Airways today announced plans to speed up its transition to sustainable aviation fuel (SAF) with an offtake agreement with SG Preston, a leading bioenergy developer. With the addition of this SG Preston agreement to its previous SAF commitments, JetBlue is well ahead of pace on its target to convert 10 percent of its total fuel usage to SAF on a blended basis by 2030. The airline will reach nearly eight percent SAF usage by the end of 2023 when delivery of SAF under this agreement is expected. JetBlue is doubling its previous SAF commitment with SG Preston, which was first announced in 2016 as one of the largest SAF purchase agreements in aviation history.

JetBlue’s agreement with SG Preston also marks a major milestone for SAF in New York’s airports. This deal is expected to bring the first large-scale volume of domestically produced SAF for a commercial airline to New York’s metropolitan airports. JetBlue will convert 30 percent of its fuel buy across John F. Kennedy International Airport (JFK), LaGuardia Airport (LGA) and Newark Liberty International Airport (EWR) from traditional Jet-A fuel to SAF (b), which is expected to reduce emissions by an estimated 80 percent per gallon of neat SAF, compared to traditional petroleum-based fuels.

Targeting a start in 2023 and continuing over a 10-year period, SG Preston will deliver at least 670 million gallons of blended SAF to JetBlue to fuel its flight operations at JFK, LGA and EWR, helping JetBlue avoid approximately 1.5 million metric tons of CO2 emissions. JetBlue expects to invest more than $1 billion in purchasing SAF over the term of this agreement, at a price competitive to traditional Jet-A fuel, with no expected material impact to the airline’s total fuel costs. This marks the largest-ever announced near-term SAF deal for delivery in the Northeast and will be become the airline’s largest single jet fuel contract.

“We are well past the point of vague climate commitments and corporate strategies. Earlier this year, we set specific, dated, and aggressive emissions targets. And now we are physically changing the fuel in our aircraft to meet these commitments,” said Robin Hayes, chief executive officer, JetBlue. “At JetBlue, we’re heavily investing in SAF because we see it as our most promising means of rapidly and directly reducing aircraft emissions in the near-term. With this expanded agreement with SG Preston, nearly eight percent of JetBlue’s total fuel use will be SAF, putting us well ahead of pace in reaching our goal of 10 percent SAF usage by 2030.”

Sustainable aviation fuel is jet fuel produced from biological resources that can be replenished rapidly and without impacting food supply. Compared to traditional petroleum-based Jet-A fuel, renewable options can significantly reduce both greenhouse gas emissions and other air pollutants such as particulate matter and sulfur oxides. Safety is JetBlue’s number one priority, and SAF is functionally equivalent to conventional Jet-A fuel, posing no discernible difference in safety or performance. The fuel is fully compatible with existing jet engine technology and fuel distribution infrastructure when blended with fossil jet fuel, and is tested and transported the same way as regular Jet-A fuel.

SG Preston has made significant progress on a new facility in the Northeast to produce SAF at a large scale. SG Preston’s HEFA- (hydro-processed esters and fatty acids) based renewable jet fuel will be sustainably produced from waste fats, oils, greases, and non-food oilseeds. The fuel is expected to receive sustainability certification from ISCC, an independent, global certification body for sustainability and carbon reduction. SG Preston’s process utilizes industry-leading refining process technology, which has been FAA-approved for commercial flying since 2011. This SAF will be blended with Jet-A fuel at an estimated 30 percent blend ratio before being transported to JFK, LGA, and EWR.

“The SG Preston-JetBlue relationship is the blueprint for a balanced partnership designed to achieve both the airline’s and global aviation’s sustainability and pricing goals. The reality of achieving the US sustainability target of approximately 35 billion gallons of sustainable aviation fuel by 2050 is daunting. Engaging with, and addressing the concerns of all key stakeholders and contributors to the solution, is paramount to successfully reaching this target. JetBlue’s continued commitment to SG Preston’s development strategy illustrates continued confidence in our unique approach to this challenge. We’re honored by this demonstration of trust,” said Randy Delbert Letang, CEO of SG Preston.

JetBlue’s SAF Strategy

JetBlue’s revised deal with SG Preston is its third agreement for SAF. JetBlue recently entered into a new relationship with World Energy and World Fuel Services and began flying with SAF at Los Angeles International Airport (LAX) in July 2021. Additionally, JetBlue partnered with Neste in August 2020 to fuel its flights from San Francisco International Airport (SFO) with SAF. JetBlue’s SAF strategy was developed with support and consultancy from energy market experts at ICF.

While JetBlue views SAF as the most promising solution to rapidly and directly reduce aircraft emissions in the short and medium term, it is one piece of its larger decarbonization strategy including aircraft efficiency, fuel optimization, sustainable aviation fuel, electric ground operations, technology partnerships and carbon offsetting.

Hayes continued, “We recognize that airlines have a responsibility to decarbonize our operations and usher in an era of truly sustainable travel. We are therefore stepping up as an industry with commitments and clear actions. However, we can’t do it alone. In order for our industry to meet our ambitious targets, we are asking for collaboration and leadership from our key stakeholders – fuel suppliers, aircraft and engine manufacturers, and governments to play a critical role in helping the drive toward net zero.”

JetBlue’s Commitment to Grow Sustainably in New York

New York is JetBlue’s home and where more than 7,000 of its crewmembers live and work. The airline is experiencing significant growth in New York, and furthering plans to substantially increase flying and bring more low fares and jobs to JFK, LGA and EWR as part of its Northeast Alliance with American Airlines. As JetBlue increases its presence and brings more air service to the region’s three airports, it is more important than ever to grow sustainably.

With a focus on more sustainable operations, JetBlue was recently selected for a grant from the New Jersey Department of Environmental Protection’s transportation electrification initiative for electric ground service equipment (eGSE) at EWR. With this grant, JetBlue will convert 38 ground service vehicles to electric, and install 16 dual-port charging stations, with additional support from the Port Authority of New York and New Jersey. Following this conversion and one in process at Boston Logan International Airport, JetBlue will have converted 39 percent of these three vehicle types to electric. This is significant progress towards JetBlue’s eGSE goal to convert 40 percent of its bag tugs, belt loaders, and pushbacks network wide to electric by 2025, and 50 percent by 2030.

Additionally, JetBlue is making significant updates to T5 by upgrading the entire terminal to LED lighting solutions provided by Brightcore Energy, a premier provider of turn-key energy efficiency projects from lighting to solar, renewable heating & cooling, EV chargers, and battery storage. The T5 upgrades will reduce JetBlue’s lighting-related energy use by approximately 66 percent, based on current usage. The project will have a significant impact, saving more than 2.1 million kWh annually, while improving aesthetics, lowering energy costs and reducing the terminal’s carbon footprint.

“We applaud JetBlue’s commitment to convert 30 percent of its fuel demand from traditional jet fuel to sustainable aviation fuel across the three major New York airports. This latest initiative from JetBlue is a critical step towards accelerating the production and adoption of SAF in the northeast, and achieving the associated environmental benefits in our region,” said Rick Cotton, Executive Director of the Port Authority of NY & NJ. “This initiative advances our continued collaboration with JetBlue on important sustainability measures, including energy efficiency upgrades and electrifying ground support equipment at our airports.”

JetBlue’s Focus on the Environment

JetBlue depends on natural resources and a healthy environment to keep its business running smoothly. Natural resources are essential for the airline to fly and tourism relies on having beautiful, natural and preserved destinations for customers to visit. The airline focuses on issues that have the potential to impact its business. Customers, crewmembers and community are key to JetBlue’s sustainability strategy. Demand from these groups for responsible service is one of the motivations behind changes that help reduce the airline’s environmental impact.

Top Copyright Photo: JetBlue Airways Airbus A220-300 (CS300 BD-500-1A11) N3008J (msn 55099) (Hops) JFK (Fred Freketic). Image: 953426.

JetBlue aircraft slide show:

Air Canada posts a EBITDA loss of $763 million in the first quarter

Air Canada Airbus A220-300 (CS300 BD-500-1A11) C-GMZY (msn 55102) YYZ (TMK Photography). Image: 952987.

Air Canada today reported first quarter 2021 financial results:

 

  • Operating revenues of $729 million, a decline of $2.993 billion or 80 per cent from the first quarter of 2020.
  • Negative EBITDA (1) (earnings before interest, taxes, depreciation and amortization), excluding special items, of $763 million compared to EBITDA of $71 million in the same quarter of 2020.
  • Operating loss of $1.049 billion compared to an operating loss of $433 million in the first quarter of 2020.
  • Net cash burn of $1.274 billion, or approximately $14 million per day, on average.
  • Unrestricted liquidity amounted to $6.582 billion at March 31, 2021.

“The persistence of COVID-19 and its resurgence in Canada are weighing heavily on the Canadian airline industry, as reflected in Air Canada’s first quarter results. Still, through the hard work and dedication of our employees, we are operating a limited schedule for necessary travel and to ship essential cargo. I thank our employees for their professionalism and assure them, as well as our investors and all stakeholders, that better times lie ahead for our airline,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.

“During the quarter, Air Canada’s cash burn rate progressively improved, albeit moderately given the ongoing impact of the pandemic on advance ticket sales. Air Canada had almost $6.6 billion in liquidity at the quarter’s end and we subsequently finalized a financial package with the Government of Canada (primarily comprised of repayable loans) to provide access of up to $5.9 billion more in liquidity. Beyond serving as a layer of insurance, this makes available, if required, the resources necessary to rebuild and compete in the post-pandemic world.

“We continue to pursue other revenue opportunities. Air Canada Cargo has now completed more than 7,500 all-cargo flights since March of last year. We are building our transformed Aeroplan program, establishing a well-received partnership with Starbucks in Canada. We also maintained our focus on customers and employees, becoming the first carrier in Canada to be awarded APEX’s Diamond Status for our COVID-19 Air Canada CleanCare+ biosafety program and we were named one of Montreal’s Top Employers for the eighth time and one of Canada’s Best Diversity Employers for the sixth consecutive year. Continuing on our commitment to sustainability, we now aim to achieve net-zero emissions by 2050.  To reach this, we have set absolute midterm GHG net reduction targets by 2030 in our air and ground operations compared to our 2019 baseline, and have committed to investing $50 Million in Sustainable Aviation Fuel, and carbon reductions and removals,” said Mr. Rousseau.

“With these and other measures, Air Canada is poised to emerge strongly from the pandemic. It is now essential that governments communicate and implement a reopening plan for our country; recognizing that a healthy aviation sector is vital to Canada’s economic recovery. Starting with replacing blanket restrictions with science-based testing and limited quarantine measures where appropriate, Canada can reopen and safely ease travel restrictions as vaccination programs roll out. We have seen elsewhere, notably in the U.S., that travel rebounds sharply as COVID-19 recedes and restrictions are lifted, and we fully expect this can be replicated in Canada,” concluded Mr. Rousseau.

In 2020, Air Canada implemented a COVID-19 Mitigation and Recovery Plan in response to the negative impacts of the COVID-19 pandemic on its earnings and cash from operations. The measures taken in 2020 are described in the “Strategy and COVID-19 Mitigation and Recovery Plan” section of Air Canada’s 2020 MD&A. In 2021, to date, Air Canada has taken the following additional measures:

Customer Service and Safety

Since March 2020, Air Canada has refunded more than $1.2 billion to customers holding refundable tickets. In April 2021, Air Canada started offering eligible customers who purchased non-refundable tickets for travel on or after February 1, 2020 but did not fly, the option to obtain a refund to the original form of payment. Such customer refunds will be neutral to Air Canada’s liquidity position and will improve its net working capital with proceeds drawn under the refunds credit facility from the Government of Canada. Additional details on the refunds credit facility are provided in the “Recent Developments” section of Air Canada’s First Quarter 2021 MD&A.

In January 2021, Air Canada received the Diamond Certification from the Airline Passenger Experience Association (APEX) Health Safety powered by SimpliFlying. The Diamond Certification recognized the airline for achieving hospital-grade levels of biosecurity across multiple passenger touchpoints. The certification program aims to create a global standard for health and safety measures focused on airline customers.

In March 2021, Air Canada announced several updates for Aeroplan Elite Status members, ensuring their status remains in effect, to give them flexibility and certainty. The changes include the extension of current Elite Status until the end of 2022, in addition to a previous extension through 2021, as well as the possibility to accelerate their status qualification, which will also help contribute to status qualification for 2022 and beyond.

In March 2021, Aeroplan announced its partnership with Starbucks which allows Aeroplan members to earn Aeroplan points at participating Starbucks locations across Canada. In 2021, Aeroplan intends to introduce additional program features, while expanding its partnership network in various categories, to further grow and engage its membership base.

Capacity and Route Network

In the first quarter of 2021, as a result of the continued impact of the COVID-19 pandemic, Air Canada reduced its ASM capacity by 82 per cent compared to the first quarter of 2020 (or a reduction of 84 per cent when compared to the first quarter of 2019). Air Canada plans to approximately double its second quarter 2021 ASM capacity from the same quarter in 2020.  When compared to the same period in 2019, second quarter 2021 ASM capacity is expected to decrease 84 per cent.

On March 1, 2021, Air Canada consolidated its regional flying with Jazz Aviation LP (Jazz). Through the amended CPA, which is effective on a retroactive basis to January 1, 2021, Jazz has become the sole operator of flights under the Air Canada Express banner. As further explained in the news release dated March 1, 2021, Air Canada transferred the operations of its Embraer 175 aircraft to Jazz and expects to realize $400 million in cost reductions over the term of the 15-year amended capacity purchase agreement.

Since March 2020, Air Canada has operated more than 7,500 all-cargo flights 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. In the first quarter of 2021, a total of 2,362 all-cargo flights were operated.

Financing and Liquidity

Since the start of 2021, Air Canada concluded the following transactions:

  • On April 12, 2021, Air Canada entered into a series of debt and equity financing agreements with the Government of Canada (acting through its subsidiary, Canada Enterprise Emergency Funding Corporation) which allows Air Canada to access up to $5.879 billion in liquidity through the Large Employer Emergency Financing Facility (LEEFF) program. The financial package provides for fully repayable loans that Air Canada would draw down if and as required. The package also includes an equity investment for gross proceeds of $500 million for Air Canada shares at a price of $23.1793 per share, as well as an aggregate of 14,576,564 warrants exercisable for the purchase of an equal number of Air Canada shares, subject to customary adjustments, at a price of $27.2698 per share during a 10-year term; 50 per cent of the warrants vested concurrently with the implementation of the credit facilities and the remaining 50 per cent of the warrants will vest on a proportional basis to the amounts that Air Canada may draw under the unsecured credit facilities (excluding the refunds credit facility). Additional details on the agreements are provided in the “Recent Developments” section of Air Canada’s First Quarter 2021 MD&A.
  • In March 2021, Air Canada concluded a committed secured facility totaling US$475 million to finance the purchase of the next 15 Airbus A220 aircraft scheduled for delivery in 2021 and 2022.
  • In connection with Air Canada’s December 2020 share offering, in January 2021, the underwriters partially exercised their over-allotment option to purchase an additional 2,587,000 Air Canada shares for net proceeds of $60 million.
  • In the first quarter of 2021, Air Canada extended its US$600 million and $200 million revolving credit facilities by one year, to April 2024 and to December 2023, respectively.

As part of Air Canada’s ongoing efforts to maintain adequate liquidity levels, additional financing arrangements continue to be assessed and may be pursued.

First Quarter Summary

Air Canada recorded a net loss of $1.304 billion or $3.90 per diluted share in the first quarter of 2021 compared to a net loss of $1.049 billion or $4.00 per diluted share in the first quarter of 2020.

In the first quarter of 2021, on a capacity reduction of 82 per cent, operating expenses of $1.778 billion decreased $2.377 billion or 57 per cent from the same quarter in 2020.

In the first quarter of 2021, net cash flows used in operating activities of $888 million deteriorated by $868 million from the same quarter in 2020 on lower operating results, reflecting the continued impacts of the COVID-19 pandemic and related travel restrictions.

In the first quarter of 2021, net cash burn of $1.274 billion, or approximately $14 million per day, on average, was lower than management’s expectations of between $15 to $17 million per day, on average, discussed in Air Canada’s February 12, 2021 news release. Air Canada’s net cash burn in the first quarter of 2021 included $2 million per day in net capital expenditures and $4 million per day in lease and debt service costs. The lower net cash burn versus what was previously anticipated was attributable to a combination of higher than anticipated operating earnings, favourable timing on working capital, and deferred settlement of aircraft lease returns.

Outlook

As indicated above, Air Canada plans to approximately double its second quarter 2021 ASM capacity from the same quarter in 2020.  In the second quarter of 2021, when compared to the same period in 2019, ASM capacity is expected to decrease 84 per cent. The airline will continue to dynamically adjust capacity and take other measures as required to account for health warnings, travel restrictions, border closures globally and passenger demand.

Air Canada projects a net cash burn of between $1.180 billion and $1.370 billion (or between $13 million and $15 million per day, on average) in the second quarter of 2021. This net cash burn projection includes $2 million per day in capital expenditures, net of financing, and $5 million per day in lease and debt service costs. When compared to the first quarter of 2021, the second quarter of 2021 includes approximately $1 million per day in higher scheduled debt principal repayments, an increase in end-of-lease payments due to more aircraft being returned to lessors and reflects the continuing impact of the pandemic on travel demand. The net cash burn projection excludes the amount of expected eligible refunds of non-refundable fares being processed pursuant to the change in refund policy announced on April 12, 2021 for flights impacted by the COVID-19 pandemic. Such refunds will be eligible for draws under the Government of Canada $1.404 billion refunds credit facility. As such, these refunds will generally be cash neutral to Air Canada’s liquidity position, up to the $1.404 billion limit of the facility. Air Canada estimates that the maximum exposure to cash refunds for all eligible customers holding non-refundable tickets is approximately $2 billion. It is difficult to predict the number of customers who will request a cash refund for non-refundable tickets but based on past experience and current observations since the change in refund policy on April 12, 2021, Air Canada expects cash refunds relating to the change in policy on April 12, 2021 to be substantially less than $2 billion as certain customers will choose to retain their travel voucher.

(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 First 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 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 to other airlines less meaningful. Refer to the Non-GAAP Financial Measures section in Air Canada’s First Quarter 2021 MD&A for a discussion of special items relating to the first 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.

Top Copyright Photo: Air Canada Airbus A220-300 (CS300 BD-500-1A11) C-GMZY (msn 55102) YYZ (TMK Photography). Image: 952987.

Air Canada aircraft slide show: