Air Canada ( (ACDVF) ) has released its Q1 earnings. Here is a breakdown of the information Air Canada presented to its investors.
Air Canada, a leading Canadian airline, operates in the aviation industry, providing passenger and cargo services globally. Known for its extensive network and diverse service offerings, the company plays a significant role in the Canadian and international travel markets.
In its first quarter of 2025, Air Canada reported operating revenues of $5.196 billion, reflecting a slight decline of 1% compared to the previous year. Despite the challenging winter period, the airline maintained stable revenues and continued to focus on its revenue diversification strategy, which saw growth in sixth freedom revenues and solid performance from Air Canada Cargo and Air Canada Vacations.
Key financial metrics from the quarter include an operating loss of $108 million and an adjusted EBITDA of $387 million, with a margin of 7.4%. The company reported a net loss of $102 million, with a diluted loss per share of $0.40. Cash flow from operating activities was strong at $1.526 billion, although free cash flow decreased by $225 million year-over-year. Air Canada also completed a share buyback program and announced a substantial issuer bid to purchase up to $500 million worth of shares.
Looking ahead, Air Canada plans to increase its ASM capacity by 2% to 2.5% in the second quarter of 2025. The company remains cautious about the uncertain economic outlook and is focusing on cost management and strategic capacity adjustments to ensure robust financial performance. Management is optimistic about maintaining steady demand trends and is committed to creating long-term shareholder value.
Air Canada’s management remains focused on achieving its 2028 financial targets and 2030 aspirations, emphasizing a disciplined capital allocation strategy and a commitment to shareholder value. The airline is navigating a complex market environment with a strategic approach to ensure sustained success.