Air Canada Reports September Load Factor and Updates Guidance

For the month of September, Air Canada reported a system load factor of 83.2 per cent, versus 84.9 per cent in September 2012, and a system load factor for the third quarter of 86.2 per cent, versus a record of 86.3 per cent for the quarter last year. System traffic for September increased 1.9 per cent on a system-wide capacity increase of 3.9 per cent. Air Canada reports traffic results on a system-wide basis, including Air Canada rouge, which began operations on July 1, 2013, and regional airlines from which Air Canada purchases capacity.

„I am pleased to report solid traffic results for the month of September, led by strong gains of almost six per cent in the Pacific market,” said Calin Rovinescu, President and Chief Executive Officer. „For the third quarter, our load factor of 86.2 per cent is in line with last year’s all-time high for the same period and is a strong indication of the effectiveness of our capacity management strategy given the increase in industry capacity that came into the markets in the quarter. Based on our third quarter load factor, and coupled with the ongoing positive results of our cost transformation and revenue enhancement initiatives, we expect EBITDAR (excluding the impact of benefit plan amendments in 2012) and adjusted net income for the third quarter to be above last year’s level for the same period.

„Our achievements in September are the result of our ongoing focus on the execution of our priorities. During the month, we successfully completed the refinancing of our 2010 notes, an important milestone in achieving our priorities as this significantly lowers our cost structure, strengthens our balance sheet and improves our credit profile. We also announced the implementation of an expanded commercial agreement with Air China, our valued Star Alliance partner, for enhanced codeshare and interline services that provide our customers seamless connections on a single itinerary for travel via our respective hubs to new destinations in China and in Canada. This year’s Ipsos Reid Business Traveller Survey released in September confirms that Canada’s frequent business travelers recognize Air Canada as their preferred airline by a growing margin – the widest margin versus our domestic competitors since 2008. This recognition by our most discerning customers reflects Air Canada’s award-winning product and our employees’ focus on taking care of our customers while transporting them safely to their destination,” concluded Mr. Rovinescu.

Source / Author: Air Canada