Sept 19 (Reuters) - Air Canada AC.TO on Tuesday set new near-term financial targets and said it is looking for financial institutions to partner with for a co-branded credit card, taking a step further in launching its own rewards program.
Canada's largest airline said it expects the net present value from its newly announced loyalty business at $2 billion to $2.5 billion over 15 years, excluding tax. program, which was announced in May, will replace the current Aeroplan - a move that will improve Air Canada's ability to manage its revenue, analysts had said.
Airlines have been trying to maintain leaner operations, even as they invest in upgrading their back-end technologies and better customer services in a competitive industry.
"We see many opportunities ahead, including the introduction of more efficient narrow-body aircraft into the mainline fleet," Chief Executive Calin Rovinescu said in a statement ahead of the company's investor day meeting.
The airlines said on Tuesday it expected earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent margin to range from 17 percent to 20 percent for the period 2018-2020. Earlier, it had expected those margins to be between 17-19 percent for 2018.
Free cash flow for 2018-2020 is expected to range between $2 billion to $3 billion.