Air Canada is reporting record numbers for 2014 with full year adjusted net income of $531 million or $1.81 per diluted share compared to adjusted net income of $340 million or $1.20 per diluted share in 2013, an improvement of $191 million or $0.61 per diluted share.
EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rent) amounted to $1.671 billion compared to EBITDAR (excluding the impact of benefit plan amendments) of $1.433 billion in 2013, an improvement of $238 million or 16.6%. On a GAAP basis, Air Canada reported 2014 operating income of $815 million, an increase of $196 million or 31.7% from 2013. The airline reported net income of $105 million or $0.34 per diluted share in 2014 compared to net income of $10 million or $0.02 per diluted share in 2013.
“In 2014, Air Canada achieved its best full year financial performance in the corporation’s 77-year history,” said Calin Rovinescu, president and chief executive officer. “We served almost three million more customers in 2014, or a total of 38.5 million including three million customers on rouge. We recorded our highest system load factor ever as we continued to expand our widebody fleet and grow internationally. Air Canada’s share price gained 60% over the year, a more than six-fold increase in value since the start of 2013. Record results for a second consecutive year represent a significant step towards our goal of sustainable profitability, and allow us to pay out $46 million to employees through the profit sharing program, an increase of $15 million from the previous year.
He added, “We continue to implement cost reduction and revenue-generating initiatives including profitable international growth and the strategic deployment of rouge to compete in leisure markets. We remain focused on prudent capacity management and a pricing strategy based on market demand which, overall, has continued to remain strong into 2015. While fuel prices remain volatile, the recent decrease is expected to drive significant cost savings in 2015 and provides us with an opportunity to increase adjusted net income, reduce adjusted net debt and further strengthen our balance sheet.”
Air Canada expects first quarter 2015 system ASM capacity, as measured by available seat miles (ASMs), to increase 8.5% to 9.5% when compared to the first quarter of 2014, and to be comprised of an increase in the total number of seats dispatched (system) of 7% to 8% and an increase in average stage length (system) (measured by ASMs divided by seats dispatched) of approximately 1.5% when compared to the same quarter in 2014.
The airline continues to expect its full year 2015 system ASM capacity to increase by 9% to 10%.