Air Canada (TSX:AC.B) said it has more than doubled its 3Q revenue year-over-year as demand for travel has resumed post-pandemic.
Before the bell on Friday, the Montreal-based airline reported operating revenue of C$5.32 billion for the quarter, more than double the year-ago quarter and above market expectations of around C$4.9 billion.
The airline posted an operating income of C$644 million, compared to an operating loss of C$364 million in 3Q 2021, representing its first positive quarterly operating income since the pandemic began.
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Operating capacity, measured by Available Seat Miles (ASMs) more than doubled from the year-ago quarter at 79% of what was reported in 3Q of 2019.
Further, the company narrowed its net loss for the quarter to C$508 million or C$1.42 per diluted share, compared to a net loss of C$640 million or C$1.79 per diluted share in the third quarter of 2021.
Earnings before interest, taxes, depreciation and amortization (EBITDA) also improved to C$1.057 billion, compared to a negative EBITDA of C$67 million in the third quarter of 2021.
The company noted its 3Q 2022 loss included a foreign exchange loss of C$951 million.
Air Canada (TSX:AC.B) president and CEO Michael Rousseau praised the company’s performance and acknowledged the operational challenges faced by the airline amid rising fuel prices.
"Despite the global disruption of air travel, through teamwork and focused efforts, we safely transported nearly 11.5 million customers to their destinations this quarter,” Rousseau said.
Fourth quarter guidance
Looking ahead at 4Q, Air Canada (TSX:AC.B) said it plans to increase its ASM capacity by about 60% from the same quarter in 2021, or about 85% of 4Q 2019’s ASM capacity.
The airline maintains its expectation of an annual EBITDA margin of about 8% to 11%.
The airline’s shares jumped following the news, with its Toronto-listed stock up about 3.8% at about C$20, while its US-listed shares were up about 2.3% at US$14.30 shortly after the market opened on Friday morning.
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