BY THE NUMBERS: AC reports Q3 results

Air Canada reported earnings before interest, taxes, depreciation, amortization and impairment, and aircraft rent (EBITDAR), before the impact of certain benefit plan amendments, of $554 million in the third quarter of 2012 compared to EBITDAR of $535 million in the third quarter of 2011, an increase of $19 million. Including the favourable impact of benefit plan amendments, EBITDAR was $678 million for the third quarter of 2012. Adjusted net income of $230 million increased $37 million from the third quarter of 2011. Adjusted net income per diluted share was $0.82 in the third quarter of 2012 compared to adjusted net income per diluted share of $0.68 in the same quarter in 2011. On a GAAP basis, Air Canada reported net income of $429 million or $1.54 per diluted share for the third quarter of 2012 compared to a net loss of $124 million or $0.45 per diluted share for the same period last year. This improvement in net income was driven in large part by favourable foreign exchange gains quarter-over-quarter. Commenting on the results, Air Canada’s president and CEO, Calin Rovinescu said: “I am extremely pleased with Air Canada’s strong financial performance in the third quarter especially given the economic environment we are operating in. We recorded EBITDAR of $554 million, or $678 million including benefit plan amendments, and adjusted net income of $230 million. We achieved passenger revenue growth of 3.1% from both yield improvement and traffic growth. Our disciplined approach to capacity management allowed us to produce a record load factor of 86.3% in the quarter. Our Pacific performance continued to be particularly strong with a revenue increase of 13.9% year-over-year.” And Rovinescu continued: “Moreover, in the first nine months of 2012, consistent with our priority of improving our balance sheet, adjusted net debt was reduced by $308 million, and our cash levels remained strong at approximately $2.2 billion.” Air Canada’s boss noted that: “We continued to focus on pursuing international growth opportunities and on the ongoing transformation of our cost structure. In addition, we have announced a number of planned fleet realignment initiatives: the transfer of 15 regional Embraer 175 aircraft to one of our Air Canada Express operators, Sky Regional Airlines, subject to certain conditions; the deployment of new Bombardier Q400s by another of our Air Canada Express operators, Jazz, on key Western Canada markets; and the introduction of two new Boeing 777 aircraft in the mainline fleet next year.” He explained that: “We are forming an integrated leisure group by combining the activities of our tour operator business with our new leisure airline. Our commercial team is currently focused on the 2013 launch of the leisure carrier and we look forward to providing further details in the coming weeks. Another recent positive development is the agreement reached with Canada’s Commissioner of Competition that will allow us to finalize and implement a Canada-U.S. transborder joint venture with United Airlines, our longstanding alliance partner, in this important aviation market.” And he concluded: “These initiatives, combined with our on-going focus on cost transformation, are aimed at ensuring Air Canada’s global competitiveness and long-term success.”