Proactive Investors - Air Canada (TSX:TSX:AC.B) has attributed a strong rise in third-quarter revenue and earnings to its focus on growing its international network, building scale at its hubs and leveraging partnerships.
Canada’s biggest airline said it transported 12.6 million passengers over the “busy and demanding” summer period but managed to keep operating expense growth at 5% despite a 10% increase in capacity.
The carrier reported a 19% increase in operating revenues to $6.34 billion for the quarter due to higher passenger revenues. The 10% increase in operating capacity was one percentage point below guidance provided in August.
Adjusted underlying earnings (EBITDA) rose $771 million to $1.45 billion, with an adjusted EBITDA margin of 28.8%.
Adjusted earnings per share more than trebled to $3.41 from $1.07.
"Viewed sequentially, Air Canada's progressive performance to date proves the success of its strategy to grow back the airline and improve operational stability, while mitigating risks,” president and CEO Michael Rousseau commented in a statement.
“This requires navigating geopolitical uncertainty, inflation and the volatile fuel price environment, meeting increased competition and dealing with supply chain, and the evolving regulatory environment.”
The airline now expects full-year ASM (available seat miles) capacity to be 20% higher than in 2022, from its August guidance for a 21% increase.
It has maintained its adjusted EBITDA guidance at between roughly $3.75 billion to $4 billion.
“We remain confident with our full-year adjusted EBITDA guidance and at this point in time, expect to land in the higher range of our full-year guidance,” Rousseau added.