Air Canada has Q1 net loss on higher revenues as airline hit by lower loonie
May 15, 2014, 6:09 am
#1
Original Poster
Join Date: Jun 2009
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Air Canada has Q1 net loss on higher revenues as airline hit by lower loonie
http://www.montrealgazette.com/busin...635/story.html
MONTREAL — Air Canada is reporting a first-quarter net loss of $341 million, or $1.20 per diluted share, as it was impacted by a lower Canadian dollar.
That compares with a net loss of $260 million, or 95 cents, in the same quarter last year for Air Canada (TSX:AC.B).
The airline says the net loss in the first quarter included foreign exchange losses of $161 million, versus foreign exchange losses of $40 million in the first quarter of 2013.
On an adjusted basis, the airline reported a net loss of $132 million, or 46 cents per diluted share, compared with a net loss of $143 million, or 52 cents per share, year-over-year.
Total revenues were up at $3.065 billion versus $2.952 billion year-over-year.
Air Canada says its earnings before interest, taxes, depreciation, amortization and impairment, and aircraft rent (EBITDAR) was $147 million compared with $145 million in the same quarter last year.
RBC Capital Markets analyst Walter Spracklin said the airline’s EBITDAR was in line to slightly better than the guidance Air Canada had provided.
The airline also posted an operating loss of $62 million in quarter, a $44 million improvement from the same quarter in 2013.
“I am pleased to report that despite the challenges of several extreme weather events and the impact of a much lower Canadian dollar in the first quarter, we delivered improved EBITDAR and adjusted results over the previous year,” president and CEO Calin Rovinescu said in a news release on Thursday.
© Copyright (c) The Montreal Gazette
MONTREAL — Air Canada is reporting a first-quarter net loss of $341 million, or $1.20 per diluted share, as it was impacted by a lower Canadian dollar.
That compares with a net loss of $260 million, or 95 cents, in the same quarter last year for Air Canada (TSX:AC.B).
The airline says the net loss in the first quarter included foreign exchange losses of $161 million, versus foreign exchange losses of $40 million in the first quarter of 2013.
On an adjusted basis, the airline reported a net loss of $132 million, or 46 cents per diluted share, compared with a net loss of $143 million, or 52 cents per share, year-over-year.
Total revenues were up at $3.065 billion versus $2.952 billion year-over-year.
Air Canada says its earnings before interest, taxes, depreciation, amortization and impairment, and aircraft rent (EBITDAR) was $147 million compared with $145 million in the same quarter last year.
RBC Capital Markets analyst Walter Spracklin said the airline’s EBITDAR was in line to slightly better than the guidance Air Canada had provided.
The airline also posted an operating loss of $62 million in quarter, a $44 million improvement from the same quarter in 2013.
“I am pleased to report that despite the challenges of several extreme weather events and the impact of a much lower Canadian dollar in the first quarter, we delivered improved EBITDAR and adjusted results over the previous year,” president and CEO Calin Rovinescu said in a news release on Thursday.
© Copyright (c) The Montreal Gazette
May 15, 2014, 6:43 am
#3
Join Date: Apr 2011
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I know the OP was just copy and paste-ing, but the title is misleading. AC had a net loss because it is still not making money. The lower loonie is only part of the story. And not even that big of a part: $120m (YoY) out of $341m. When is the press going to stop slavishly reporting AC's earning as AC wants to spin them and actually print the reality? At least on CTV news this morning they appropriately noted the foolishness of AC's strategy of reporting earnings pre-EBITDAR. Because, guess what AC, in order to run an airline, you actually need, you know, airplanes? And those airplanes are a depreciating asset? I bet their accounts think think their cars appreciate too. Anybody want to buy a Honda Civic for $200k?
May 15, 2014, 7:34 am
#4
Join Date: Jul 2005
Location: Ontario, CAN
Posts: 5,813
I know the OP was just copy and paste-ing, but the title is misleading. AC had a net loss because it is still not making money. The lower loonie is only part of the story. And not even that big of a part: $120m (YoY) out of $341m. When is the press going to stop slavishly reporting AC's earning as AC wants to spin them and actually print the reality? At least on CTV news this morning they appropriately noted the foolishness of AC's strategy of reporting earnings pre-EBITDAR. Because, guess what AC, in order to run an airline, you actually need, you know, airplanes? And those airplanes are a depreciating asset? I bet their accounts think think their cars appreciate too. Anybody want to buy a Honda Civic for $200k?
May 15, 2014, 8:05 am
#5
Join Date: Apr 2011
Location: YYC
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Airlines as a whole generally use GAAP rules to report. Air Canada seems to prefer non-GAAP so they can talk about earnings and profits before EBITDAR. I think that is shady, and I am anal about such things. Anyways, I think it is either amusing or depressing that despite rouge, record traffic, record capacity, etc. they are *still* losing money.
May 15, 2014, 8:14 am
#6
Join Date: Jul 2005
Location: Ontario, CAN
Posts: 5,813
Are you sure about that? How does WS report? What about AA? Southwest?
Q1 is always the weakest quarter for AC.
Was AC profitable in 2013?
Were they profitable in years previous?
Was AC profitable in 2013?
Were they profitable in years previous?
May 15, 2014, 8:53 am
#7
Join Date: Apr 2011
Location: YYC
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AC has been profitable in one of the last 5 quarters. And one of the last 4 years. At least that is what shows on Google Financials. I am not sure what your point is, and I am not sure what purpose me answering these questions serves. AC loses money. Consistently. Pretending otherwise is not supported by the data. I didn't attempt to force any implications profitability has for FF benefits or the type, density, and quality of seating or "rouge-ing" of routes. I just thought it was interesting that they still are losing money. Thats all.
May 15, 2014, 9:26 am
#8
Join Date: Jul 2005
Location: Ontario, CAN
Posts: 5,813
And, AC continues to lose money even with their new direction when they were profitable in 2013 and very likely will be again in 2014 after years of losses.
Just wanted clarification.
I must have misunderstood.
May 16, 2014, 12:01 am
#10
Join Date: Dec 2008
Posts: 797
Here's how North America's airlines stacked up in the first quarter of 2014.
Operating Margin (including interest expense as an operating expense).
1. Allegiant 17.9%
2. Spirit 13.7%
3. WestJet 11.5%
4. Alaska 10.6%
5. Delta 5.1%
6. AAG 4.9%
7. Southwest 4.4%
8. Industry Avg 1.8% (weighted)
9. Republic 1.3%
10. jetBlue .3%
11. Hawaiian -1.0%
12. Air Canada -4.5%
13. Skywest -5.6%
14. UAL -6.2%
Breakeven Load Factor
1. Allegiant 71.2%
2. WestJet 73.6%
3. Spirit 75.0%
4. Republic 75.2%
5. Alaska 75.8%
6. Southwest 75.8%
7. AAG 76.4%
8. Delta 79.0%
9. Industry Avg 79.9% (weighted)
10. Hawaiian 80.7%
11. jetBlue 82.9%
12. Air Canada 83.9%
13. United 86.1%
Operating Margin (including interest expense as an operating expense).
1. Allegiant 17.9%
2. Spirit 13.7%
3. WestJet 11.5%
4. Alaska 10.6%
5. Delta 5.1%
6. AAG 4.9%
7. Southwest 4.4%
8. Industry Avg 1.8% (weighted)
9. Republic 1.3%
10. jetBlue .3%
11. Hawaiian -1.0%
12. Air Canada -4.5%
13. Skywest -5.6%
14. UAL -6.2%
Breakeven Load Factor
1. Allegiant 71.2%
2. WestJet 73.6%
3. Spirit 75.0%
4. Republic 75.2%
5. Alaska 75.8%
6. Southwest 75.8%
7. AAG 76.4%
8. Delta 79.0%
9. Industry Avg 79.9% (weighted)
10. Hawaiian 80.7%
11. jetBlue 82.9%
12. Air Canada 83.9%
13. United 86.1%
May 16, 2014, 3:09 am
#11
Original Member
Join Date: May 1998
Location: Vancouver, Canada
Posts: 6,222
Here's how North America's airlines stacked up in the first quarter of 2014.
Operating Margin (including interest expense as an operating expense).
1. Allegiant 17.9%
2. Spirit 13.7%
3. WestJet 11.5%
4. Alaska 10.6%
5. Delta 5.1%
6. AAG 4.9%
7. Southwest 4.4%
8. Industry Avg 1.8% (weighted)
9. Republic 1.3%
10. jetBlue .3%
11. Hawaiian -1.0%
12. Air Canada -4.5%
13. Skywest -5.6%
14. UAL -6.2%
Breakeven Load Factor
1. Allegiant 71.2%
2. WestJet 73.6%
3. Spirit 75.0%
4. Republic 75.2%
5. Alaska 75.8%
6. Southwest 75.8%
7. AAG 76.4%
8. Delta 79.0%
9. Industry Avg 79.9% (weighted)
10. Hawaiian 80.7%
11. jetBlue 82.9%
12. Air Canada 83.9%
13. United 86.1%
Operating Margin (including interest expense as an operating expense).
1. Allegiant 17.9%
2. Spirit 13.7%
3. WestJet 11.5%
4. Alaska 10.6%
5. Delta 5.1%
6. AAG 4.9%
7. Southwest 4.4%
8. Industry Avg 1.8% (weighted)
9. Republic 1.3%
10. jetBlue .3%
11. Hawaiian -1.0%
12. Air Canada -4.5%
13. Skywest -5.6%
14. UAL -6.2%
Breakeven Load Factor
1. Allegiant 71.2%
2. WestJet 73.6%
3. Spirit 75.0%
4. Republic 75.2%
5. Alaska 75.8%
6. Southwest 75.8%
7. AAG 76.4%
8. Delta 79.0%
9. Industry Avg 79.9% (weighted)
10. Hawaiian 80.7%
11. jetBlue 82.9%
12. Air Canada 83.9%
13. United 86.1%