RE:AC: Available capital over the next 3 yearsNice, well done.
It is wise to take the AC financial statements numbers which are the ''minimal contractual obligations '' of Air Canada.
Personnaly, I prefer the second scenario, wrongly called ',worst case'' ; the weaker yield on Europe, the pilot's future agreement surely over what was included in AC's forecasts and future agents negociations drive to a more conservative profit.
Even with this scenario, there's no problem. It looks tight in 2026 with a 4,5 B$ capex program, but there is some things to consider:
- Don't forget that the AC definition of FCF deduct the leasing of aircrafts. Like the recent MAX additions, they will surely lease some acquisitions in 2026.
- In addition, even if t is not included in the AC definition, conventional borrowing is a source of cash too. With a debt rato already below 1.1, there's no problem to add some reasonnable amount of debt in the balance sheet. There's no wisdom to have a too low debt, a debt financing at 5% is a lot cheaper than by equity.