Air Canada today announced its 2022 full-year outlook and 2022-2024 key targets in conjunction with its 2022 Investor Day being held today from 9:00 a.m. to 1:00 p.m. ET. The event will be webcast live for media and interested parties.
“With the pandemic receding and travel returning, Air Canada has put in place a strategy to return to profitability and increase long-term shareholder value. Our expectations for the long-term success of our airline give us confidence to set out key targets that will serve to drive continuous improvement within the company and provide transparency for investors to track our progress,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.
“Central to our efforts will be our continuing emphasis on controlling costs while also making strategic investments, including those to advance ESG commitments, promote network growth, elevate the customer experience and heighten employee engagement. Through our focus on these priorities, propelled by our people and award-winning culture, we aim to command a highly competitive position emerging from the pandemic as a Canadian global champion.”
Investor Day Agenda
At Air Canada’s 2022 Investor Day, Mr. Rousseau will provide an update on the airline’s strategy. In addition, members of the Air Canada executive team will detail recent and upcoming initiatives, as follows:
- Overview of the Commercial Strategy – Our Flight Path Lucie Guillemette – Executive Vice-President and Chief Commercial Officer
- Reaching New Frontiers Mark Galardo – Senior Vice President, Network Planning and Revenue Management
- Elevating Customer Loyalty with Aeroplan Mark Nasr – Senior Vice President, Products, Marketing and eCommerce
- The Accelerated Growth of Air Canada Cargo Jason Berry – Vice President, Cargo
- Raising the Customer Experience and Operational Excellence Craig Landry – Executive Vice President and Chief Operations Officer
- Leveraging AI and Driving Business Transformation Mel Crocker – Vice President and Chief Information Officer
- The Long-Term Growth Trajectory Amos Kazzaz – Executive Vice-President and Chief Financial Officer
- Our ESG Value Proposition Fireside chat with Arielle Meloul-Wechsler – Executive Vice President, Chief Human Resources Officer and Public Affairs, and Marc Barbeau – Executive Vice President and Chief Legal Officer
2022 Full Year Outlook
In addition to its key targets for 2022-2024 described further below, Air Canada is providing the following 2022 full-year outlook:
- Air Canada plans to increase its full year 2022 ASM capacity by about 150 per cent from 2021 ASM levels (or about 75 per cent of 2019 ASM levels). Air Canada will continue to adjust capacity and take other measures as required, including so as to account for passenger demand, public health guidelines, and travel restrictions globally, as well as other factors, such as inflation and other cost pressures.
- For 2022, Air Canada expects adjusted cost per available seat mile (CASM)* to increase about 13 to 15 per cent when compared to 2019.
- For 2022, Air Canada expects an annual EBITDA margin* of about 8 to 11 per cent.
*EBITDA margin and adjusted CASM are each non-GAAP financial measures or non-GAAP ratios.
2022-2024 Long-Term Targets
Air Canada is targeting:
- an annual EBITDA* margin (earnings before interest, taxes, depreciation, and amortization, as a percentage of operating revenue) of about 19 per cent for full year 2024,
- an annual return on invested capital (ROIC)* of about 15 per cent by year-end 2024,
- a net debt to trailing 12-month EBITDA (leverage ratio)* approaching 1.0 by year-end 2024,
- cumulative free cash flow* generation of about $3.5 billion for the 2022-2024 period,
- 2024 full year ASM capacity of about 95 per cent of 2019 ASM levels,
- 2024 adjusted cost per available seat mile (CASM)* increase of about 2 to 4 per cent when compared to 2019, and
- 40 per cent growth in the Aeroplan membership base by the end of 2024, when compared to February 2019 levels.
*EBITDA margin, ROIC, leverage ratio, free cash flow and adjusted CASM are each non-GAAP financial measures or non-GAAP ratios.