Air Canada reports record third quarter 2014 results
EBITDAR amounted to $749 million compared to EBITDAR of $626 million in the third quarter of 2013, an improvement of $123 million. On a GAAP basis, Air Canada reported operating income of $526 million, an increase of $110 million from the same quarter in 2013.
The airline recorded net income of $323 million or $1.10 per diluted share in the third quarter of 2014 compared to a net income of $299 million or $1.05 per diluted share in the third quarter of 2013, an improvement of $24 million or $0.05 per diluted share.
"I am extremely pleased to report Air Canada's best financial performance of any quarter in the Corporation's 77-year history, surpassing previous records for adjusted net income, operating income and EBITDAR," said Calin Rovinescu, President and Chief Executive Officer.
"Operating margin was 13.8 percent, an increase of 1.8 percentage points over the previous year's quarter, underscoring the effectiveness of our business transformation strategy.
"The recent tailwind provided by a reduction in fuel prices is a welcome development but we remain focused on further cost reductions to achieve sustainable profitability in this highly competitive industry environment.
"While foreign exchange rates and fuel prices have fluctuated since 2012, Air Canada remains on track to achieve the savings targeted when we announced our objective at our June 2013 Investors' Day to achieve a 15 percent CASM reduction from our 2012 baseline costs. ■