Air Canada Reports 2020 Annual Results
Feb 12, 2021, 6:25 am
#1
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Air Canada Reports 2020 Annual Results
4th quarter and full year 2020 results published.
Total revenues of $5.833 billion in 2020 declined $13.298 billion or 70 per cent from 2019. The airline reported 2020 negative EBITDA(1) (excluding special items) or (earnings before interest, taxes, depreciation and amortization) of $2.043 billion compared to 2019 EBITDA of $3.636 billion. Air Canada reported an operating loss of $3.776 billion in 2020 compared to operating income of $1.650 billion in 2019. Unrestricted liquidity amounted to $8.013 billion at December 31, 2020.
Air Canada Reports 2020 Annual Results - Feb 12, 2021 (mediaroom.com)
Total revenues of $5.833 billion in 2020 declined $13.298 billion or 70 per cent from 2019. The airline reported 2020 negative EBITDA(1) (excluding special items) or (earnings before interest, taxes, depreciation and amortization) of $2.043 billion compared to 2019 EBITDA of $3.636 billion. Air Canada reported an operating loss of $3.776 billion in 2020 compared to operating income of $1.650 billion in 2019. Unrestricted liquidity amounted to $8.013 billion at December 31, 2020.
Air Canada Reports 2020 Annual Results - Feb 12, 2021 (mediaroom.com)
Feb 12, 2021, 7:18 am
#3
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I suspect there is a difference between government assistance and what would be considered a bailout. On the call this am they indicated that they have seen 17% return on their pension investments and do have reasonable financial flexibility. They also indicated that negotiations over the last few weeks with government have been positive and the pace of the discussions has picked up. Calin indicated that refunds are part of the discussion. If the government comes forward with industry specific assistance, they will surely take advantage of this, as long as it has a positive impact on AC.
Feb 12, 2021, 8:54 am
#5
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I agree - they have a long long way to hang on. So if the government is determined to push to nationalize them - it is a long way off. Also - look at the cargo revenue - especially some regions. Transatlantic had 50% more cargo rev than PAX rev (surprised they got $1m per day transatlantic in Q4 - that's like 2,000 passengers/day - which just feels really high - I suppose they are likely down to mid hundreds at most).
Also - the liquidity is very clear and they could go 18 months at current burn rate. Would like to go hear the replay of the call as I'm curious what questions were asked as to how the future will develop.
Also - the liquidity is very clear and they could go 18 months at current burn rate. Would like to go hear the replay of the call as I'm curious what questions were asked as to how the future will develop.
Last edited by tcook052; Feb 12, 2021 at 9:55 am Reason: Off topic political commentary
Feb 12, 2021, 8:59 am
#6
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Semantics perhaps, but it's more like 12 months. AC minimum cash levels for sustained operations is 2.4 Billion. But even then, they have enough unencumbered assets to generate further liquidity if needed.
Feb 12, 2021, 9:33 am
#7
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Simple theory, hold passenger refunds hostage and leverage discussion to maximize government funds without tapping into own. Government equity injection theory wouldn't work here as it does for EY, EK, QR or SQ. Maybe give GoC a seat at the board.
Feb 13, 2021, 8:41 pm
#8
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Do we really think AC is going to give up the refunds? Even if the government demands this as a condition of the bailout, I don't see AC refunding passengers.
Feb 13, 2021, 8:58 pm
#9
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Feb 13, 2021, 8:59 pm
#10
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Feb 13, 2021, 9:05 pm
#11
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Same with the Aeroplan liabilities. They got quite a bit off their books from 1,162M to 572M in 2020. Guess "travel at home" had something to do with that
Feb 13, 2021, 10:21 pm
#12
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Earlier this month, Sunwing Airlines and Vacations received combined $375M from the government. One of the conditions was to maintain a separate account to hold money from customers whose trips were cancelled due to the pandemic, until the government and airline industry established a policy on refunds and credits of prepaid amounts.
Feb 13, 2021, 10:42 pm
#13
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Please note that there is a specific thread to discuss a potential bail-out.
AC rules out 'colossal failure' of government stake for aid; bailout debate thread
Discussion of the putative bail-out should continue there; this thread is for discussion of the Q4 2020 results.
Adam Smith
AC Forum Co-Moderator
AC rules out 'colossal failure' of government stake for aid; bailout debate thread
Discussion of the putative bail-out should continue there; this thread is for discussion of the Q4 2020 results.
Adam Smith
AC Forum Co-Moderator
Feb 13, 2021, 11:00 pm
#14
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Same with the Aeroplan liabilities. They got quite a bit off their books from 1,162M to 572M in 2020. Guess "travel at home" had something to do with that
- Firstly, you're confusing "Aeroplan and other deferred revenue" with purely Aeroplan.
- You're only looking at the short-term portion (the portion of the liability that's expected to come due within the next 12 months). Aeroplan liabilities are spread across both short- and long-term. Total Aeroplan liabilities increased by over $400MM last year, from $2,825MM to $3,256MM.
Feb 15, 2021, 6:05 am
#15
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How do you refund thousands of PNRs that have already been converted into gift cards? Aeroplan miles?
Even if thats possible, it would take AC years to manually consolidate and catch up.
I think it's safe to assume that the money already stolen from people by AC will never be recovered
