- Air Canada provides full year 2022 outlook
- Air Canada announces key targets for 2022-2024
- Aeroplan membership growth
MONTREAL, March 30, 2022 /CNW Telbec/ – Air Canada today announced its 2022 full-year outlook and 2022-2024 key targets in conjunction with its 2022 Investor Day being held today from 9:00 a.m. to 1:00 p.m. ET. The event will be webcast live for media and interested parties.
The live webcast and the replay of the event will be available at https://www.aircanada.com/ca/en/aco/home/about/media/speeches-presentations.html
“With the pandemic receding and travel returning, Air Canada has put in place a strategy to return to profitability and increase long-term shareholder value. Our expectations for the long-term success of our airline give us confidence to set out key targets that will serve to drive continuous improvement within the company and provide transparency for investors to track our progress,” said Michael Rousseau, President and Chief Executive Officer of Air Canada. “Central to our efforts will be our continuing emphasis on controlling costs while also making strategic investments, including those to advance ESG commitments, promote network growth, elevate the customer experience and heighten employee engagement. Through our focus on these priorities, propelled by our people and award-winning culture, we aim to command a highly competitive position emerging from the pandemic as a Canadian global champion.”
Investor Day Agenda
At Air Canada’s 2022 Investor Day, Mr. Rousseau will provide an update on the airline’s strategy. In addition, members of the Air Canada executive team will detail recent and upcoming initiatives, as follows:
- Overview of the Commercial Strategy – Our Flight Path
Lucie Guillemette – Executive Vice-President and Chief Commercial Officer - Reaching New Frontiers
Mark Galardo – Senior Vice President, Network Planning and Revenue Management - Elevating Customer Loyalty with Aeroplan
Mark Nasr – Senior Vice President, Products, Marketing and eCommerce - The Accelerated Growth of Air Canada Cargo
Jason Berry – Vice President, Cargo - Raising the Customer Experience and Operational Excellence
Craig Landry – Executive Vice President and Chief Operations Officer - Leveraging AI and Driving Business Transformation
Mel Crocker – Vice President and Chief Information Officer - The Long-Term Growth Trajectory
Amos Kazzaz – Executive Vice-President and Chief Financial Officer - Our ESG Value Proposition
Fireside chat with Arielle Meloul-Wechsler – Executive Vice President, Chief Human Resources Officer and Public Affairs, and Marc Barbeau – Executive Vice President and Chief Legal Officer
2022 Full Year Outlook
In addition to its key targets for 2022-2024 described further below, Air Canada is providing the following 2022 full-year outlook:
- 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 Canada will continue to adjust capacity and take other measures as required, including so as to account for passenger demand, public health guidelines, and travel restrictions globally, as well as other factors, such as inflation and other cost pressures.
- For 2022, Air Canada expects adjusted cost per available seat mile (CASM)* to increase about 13 to 15 per cent when compared to 2019.
- For 2022, Air Canada expects an annual EBITDA margin* of about 8 to 11 per cent.
*EBITDA margin and adjusted CASM are each 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 to the most comparable GAAP financial measure.
The 2022 full-year outlook provided in this news release constitutes forward-looking statements within the meaning of applicable securities laws, is based on a number of assumptions, including those discussed below, and is subject to a number of risks and uncertainties. Please see the section below entitled “Caution Regarding Forward-Looking Information”.
2022-2024 Long-Term Targets
Air Canada is targeting:
- an annual EBITDA* margin (earnings before interest, taxes, depreciation, and amortization, as a percentage of operating revenue) of about 19 per cent for full year 2024,
- an annual return on invested capital (ROIC)* of about 15 per cent by year-end 2024,
- a net debt to trailing 12-month EBITDA (leverage ratio)* approaching 1.0 by year-end 2024,
- cumulative free cash flow* generation of about $3.5 billion for the 2022-2024 period,
- 2024 full year ASM capacity of about 95 per cent of 2019 ASM levels,
- 2024 adjusted cost per available seat mile (CASM)* increase of about 2 to 4 per cent when compared to 2019, and
- 40 per cent growth in the Aeroplan membership base by the end of 2024, when compared to February 2019 levels.
*EBITDA margin, ROIC, leverage ratio, free cash flow and adjusted CASM are each 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 to the most comparable GAAP financial measure.
The 2022-2024 long-term targets provided in this news release do not constitute guidance or outlook, but rather are provided for the purpose of assisting the reader in measuring progress toward Air Canada’s objectives. The reader is cautioned that using this information for other purposes may be inappropriate. Air Canada may review and revise these targets as economic, geopolitical, market and regulatory environments change. These targets are used as goals as Air Canada executes on its strategic priorities, and they assume a normal business environment. Air Canada’s ability to achieve these targets is dependent on its success in achieving initiatives and business objectives that are described in the Investor Day presentation and on certain major assumptions, including those discussed below, and are subject to a number of risks and uncertainties. Please see the section below entitled “Caution Regarding Forward-Looking Information”.
About Air Canada
Air Canada is Canada’s largest domestic and international airline, the country’s flag carrier and a founding member of Star Alliance, the world’s most comprehensive air transportation network. Air Canada is the only international network carrier in North America to receive a Four-Star ranking from the independent U.K. research firm Skytrax, which in 2021 also named Air Canada as having the Best Airline Staff in North America, Best Airline Staff in Canada, Best Business Class Lounge in North America, as well as an Excellence award for its handling of COVID-19. Also in 2021, Air Canada was named Global Traveler’s Best Airline in North America for the third straight year. In January 2021, Air Canada received APEX’s Diamond Status Certification for the Air Canada CleanCare+ biosafety program for managing COVID-19, the only airline in Canada to attain the highest APEX ranking. Air Canada has also committed to a net zero emissions goal from all global operations by 2050.