Air Canada Forecasts 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. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results. Refer to the "Non-GAAP Financial Measures" section of this news release for descriptions of Air Canada's non-GAAP financial measures and non-GAAP ratios and for a reconciliation to the most comparable GAAP financial measure.
The 2022 full-year outlook provided in this news release constitutes forward-looking statements within the meaning of applicable securities laws, is based on a number of assumptions, including those discussed below, and is subject to a number of risks and uncertainties. Please see the section below entitled "Caution Regarding Forward-Looking Information".
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.