Air Canada T.AC

Alternate Symbol(s): ACDVF

Industrials Airlines

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

Air Canada > Jet fuel prices up over 125% since last year

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Comment by TheGrapeOneon Jun 14, 2022 2:52pm

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Post# 34755874

RE:RE:Jet fuel prices up over 125% since last year

Ok again bigger signal to the market is his sale of 5 x the amount of shares.......

And one of the reasons profits will be down this year was the increase in jet fuel prices last year AC averaged $0.74 per L this year they are expecting $1.10 L

Ac used 2,100,000,000, thats 2.1 billion the increase in the fuel price will cost AC $756,000,000 this year if the fuel consuption stays the same. It should increase as travel slowly picks up

That means that on top of last years operating costs there will be a new additonal cost of seven hundred and fifty six million and up.

Now the current price of jet fuel is $1.76 L that would put the increas in cost to AC to $2,142,000,000

How can you say it will not have an effect.

But oh wait the CFO bought a few shares after selling 5x the amount so that means every one should buy right

LOL

Just curious do you do any kind of research before you post or do you just hink if you keep repeating it the price might go up?

factoman wrote: Are you suggesting that last year's earnings were low because of the rise in jet fuel costs? Won't even go there.

In 2013 and part of 2014, oil prices varied between $110 and $130 USD, and North American airlines were profitable. Air fares reflected the price of oil.

Today, Air Canada is a much different airline today than it was then. Why? A young fuel-efficient fleet and denser seating configurations exists now, that was not the case nine years ago.

For example, the smallest aircraft in Air Canada's fleet today is the Airbus A220 which replaced the smaller Embraer E190. The E190 was a much older aircraft and seated 97 passengers. The Airbus 220 carriers 40 percent more passengers (137), with engines that are at least 15 percent more fuel efficient. That is a huge savings and represents a significant decrease in fuel cost per seat mile flown.

At the other end of the fleet, the average seat density on Air Canada’s wide-body B777-300ER is about 425 seats compared to the average of the other NA carriers (about 360 seats), European carriers (about 340 seats), Middle East Carriers (about 330 seats) and even lower for Asian carriers. (Source, Investor Day presentation). In 2013, the seating capacity of Air Canada’s B777-300ER was approx. 350 seats.

All said and done, going into summer 2022 with the Russia-Ukraine war well underway, it’s safe to assume that Air Canada priced summer fares based on much higher fuel costs than what was the price earlier this year, and what the price is now. Recall also that Air Canada purchases its fuel one month in advance, so July's fuel is already bought.

Could be a reason the CFO signaled the market with his share purchase.