Thursday, May 30, 2024

Air Canada: net loss of $974 million in the first quarter of 2022

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Alan Binder
Alan Binder
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Air Canada continues to grapple with the effects of the pandemic by collecting tumultuous financial results, as the air carrier posted a net loss of $974 million in the first quarter of 2022.

This result represents a performance, if compared to the maximum earnings loss of $1.304 billion, or a loss per diluted share of $3.90, recorded in the first quarter of 2021.

In a similar trend, operating loss was $550 million, compared to an operating loss of $1.049 billion in the first quarter of last year.

EBITDA was negative $143 million, compared to $763 million a year earlier.

Operating revenue was $2.573 billion in the first quarter of 2022, nearly three and a half times the result recorded during the same period in 2021.

Air Canada has increased its operating capacity by about 3.4 times in a year, but it is still below the threshold known before the COVID-19 pandemic.

“The significant improvement in Air Canada’s annual results in the first quarter is concrete evidence that recovery is underway,” Air Canada President and CEO Michael Russo said Tuesday.

The airline is heading for a post-pandemic recovery with plans to grow, diversify its operating income and, above all, cut costs.

“Air Canada Cargo’s expansion is one, as the division sees a 42% increase in quarterly revenue from the first quarter of 2021 to $398 million, and its fleet is growing with the addition of two new Boeing 767-300s that will be delivered in 2022,” In detail, Mr. Rousseau.

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