Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Air Canada T.AC

Alternate Symbol(s):  ACDVF

Air Canada is an airline company. The Company is a provider of scheduled passenger services in the Canadian market, the Canada-United States (U.S.) transborder market and the international market to and from Canada. It provides scheduled service directly to more than 180 airports in Canada, the United States and internationally on six continents. The Company’s Aeroplan program is Canada's premier travel loyalty program, where members can earn or redeem points on the airline partner network of 45 airlines, plus through a range of merchandise, hotel and car rental rewards. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using its passenger and freighter aircraft. Its Air Canada Vacations is a tour operator, which is engaged in developing, marketing, and distributing vacation travel packages in the outbound/inbound leisure travel market. Air Canada Rouge is Air Canada's leisure carrier.


TSX:AC - Post by User

Bullboard Posts
Comment by airlineinvestoron Mar 14, 2020 4:26pm
348 Views
Post# 30808175

RE:Shares Turnover, Financial Flexibility..Not all the Same

RE:Shares Turnover, Financial Flexibility..Not all the SameOTB, Air Canada would definitely be at the top of the heap in terms of financial flexibility.
 
 
According to S&P Capital IQ December 31, 2019 data:
 
(Capital IQ’s Net Debt and EBITDA numbers are slightly different, but I’ll use their numbers for comparison purposes.)
 
Air Canada’s Net Debt to EBITDA is 0.96, Delta’s is 1.27 and Southwest Airlines is 0.0.  (Air Canada’s calculated Net Debt to EBITDA multiple at year-end 2019 is 0.8.)
 
Air Canada’s cash and cash equivalents are $6,401 million including a long-term investment of $512 million, which can be converted to cash if needed (Page 42, 2019 MD&A).  This has been set aside to pay in full a senior unsecured note due in the first half of 2020.  Air Canada has a $979 million undrawn credit line for a total liquidity position of $7,380 million.
 
Delta’s cash and cash equivalents are $2,894 million.  Delta also has a long-term investment of $1,099 million but this is an equity investment, so it’s not counted.   Delta has a $3,109 million undrawn credit line for a total liquidity position of $6,003 million.
 
Southwest Airline’s cash and cash equivalents are $4,072 million.  Southwest has no long-term investments.  Southwest has a $1,000 million undrawn credit line for a total liquidity position of $5,072 million.
 
To summarize:
 
Southwest Airlines cash and cash equivalents are 18.2 percent of total revenue  (4,072 m / 22,428 m).  Total liquidity is $5,072 million.
 
Delta’s cash and cash equivalents are 6.2 percent of total revenue (2,894 m / 47,007 m).  Total liquidity is $6,003 million.
 
Air Canada’s cash and cash equivalents are 33.5 percent of total revenue (6,401 m / 19,131 m).  Total liquidity is $7,380 million.
 
Bullboard Posts