- Record fourth quarter passenger revenues of
$4.062 billion , doubled than fourth quarter 2021 and about two per cent higher than fourth quarter 2019 - Record fourth quarter operating revenues of
$4.680 billion , 71 per cent higher than fourth quarter 2021 and about six per cent higher than fourth quarter 2019 - Operating losses of $28 million in the fourth quarter of 2022 and of
$187 million for the full year 2022 - Adjusted EBITDA* of
$389 million in the fourth quarter of 2022 and of$1.457 billion for the full year 2022 - Adjusted EBITDA margin* of 8.3 per cent for the fourth quarter of 2022 and of 8.8 per cent for the full year 2022
- Total liquidity of over
$9.8 billion atDecember 31 , 2022
"We are pleased with our fourth quarter and full year 2022 financial results. We reported record fourth quarter passenger and operating revenues, surpassing our results from a year ago and those of the fourth quarter of 2019. This was due to solid demand and yield environments across our network. This progress was also a result of the dedication and hard work of our employees who safely transported more than two million customers during a holiday period challenged by severe winter weather across
(*Adjusted CASM, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted pre-tax income (loss), free cash flow, leverage ratio, net debt, and return on invested capital referred to in this news release, are non-GAAP financial measures, capital management measures, non-GAAP ratios or supplementary financial measures. 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 these measures, and for a reconciliation of |
"Our performance is attributable to the deep resilience we have built into our company for long-term stability. We reported positive cash flows from operations in the fourth quarter of
"These results also validate our strategy of diversifying our revenue sources. In our core passenger business, revenue was about two per cent higher than in the fourth quarter of 2019. Revenue from our premium cabins was about 13 per cent higher, supported in part by Aeroplan. The loyalty program's active membership is at an all-time high and continues to grow, and Air Canada Cargo revenue was up 55 per cent compared to the same quarter pre-pandemic. Similarly,
"We are very encouraged with the positive outlook ahead. Our quarterly ticket sales were 102 per cent of the fourth quarter of 2019, on a lower level of capacity, and we expect a solid demand environment in 2023. In anticipation, we are building out our global network, continuing our narrow-body fleet renewal, and investing in technology and customer service. More than 36 million people chose to fly with
Fourth Quarter 2022 Financial Results
- Operating capacity, measured by Available Seat Miles (ASMs) increased about 59 per cent from the fourth quarter of 2021, representing about 85 per cent of the fourth quarter of 2019 ASMs, in line with projections in
Air Canada's third quarter 2022 earnings release, datedOctober 28, 2022 . - Record fourth quarter passenger revenues of
$4.062 billion nearly doubled from the fourth quarter of 2021, or about a two per cent increase from the fourth quarter of 2019. - Record fourth quarter operating revenues of
$4.680 billion increased 71 per cent from the fourth quarter of 2021 and about six per cent from the fourth quarter of 2019. - Operating expenses of
$4.708 billion increased$1.474 billion from the fourth quarter of 2021. - Cost per available seat mile (CASM) decreased to
21.1 cents from23.0 cents in the fourth quarter of 2021. - Adjusted cost per available seat mile* (adjusted CASM) of
13.7 cents , compared to fourth quarter 2021 adjusted CASM of16.7 cents . Compared to the fourth quarter of 2019, adjusted CASM increased about 15 per cent. - Operating loss of
$28 million , significantly better than an operating loss of$503 million in the fourth quarter of 2021. - Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of
$389 million , an increase from adjusted EBITDA of$22 million in the fourth quarter of 2021. - Net income of
$168 million (or$0.41 per diluted share), compared to a net loss of$493 million (or$1.38 per diluted share) in the fourth quarter of 2021. Fourth quarter 2022 net income included a foreign exchange gain of$316 million . - Adjusted net loss* of
$217 million (or$0.61 per diluted share), compared to an adjusted net loss of$577 million (or$1.61 per diluted share) in the fourth quarter of 2021. - Net cash flows from operations of
$647 million compared to net cash flows from operations of$508 million in the fourth quarter of 2021.
Full Year 2022 Financial Results
- Operating capacity, measured by Available Seat Miles (ASMs) increased two-and-a-half times from 2021, representing about 73 per cent of 2019 ASMs, in line with projections in
Air Canada's third quarter 2022 earnings release, datedOctober 28, 2022 . - Passenger revenues of
$14.238 billion more than tripled from 2021, recovering to about 83 per cent of 2019 passenger revenues. - Operating revenues of
$16.556 billion increased over two-and-a-half times from 2021, recovering to about 87 per cent of 2019 operating revenues. - Operating expenses of
$16.743 billion increased$7.294 billion or 77 per cent from 2021. - Cost per available seat mile (CASM) decreased to
20.3 cents from28.3 cents in 2021. - Adjusted CASM of
13.2 cents compared to 2021 adjusted CASM of23.3 cents . Compared to 2019, adjusted CASM increased approximately 19 per cent, one percentage point above the high-end of the range projected inAir Canada's third quarter 2022 earnings release, datedOctober 28, 2022 . This increase was due to the impact of higher passenger traffic and yield (which increased sales and distribution costs), general inflationary pressures, including but not limited to higher catering and service costs, customer disruption costs greater than expected (largely due to weather-related disruptions in the fourth quarter of 2022), and higher employee benefits expense. - Operating loss of
$187 million significantly better than an operating loss of$3.049 billion in 2021. - Adjusted EBITDA of
$1.457 billion , compared to negative adjusted EBITDA of$1.464 billion in 2021. - Net loss of
$1.700 billion (or$4.75 per diluted share), compared to a net loss of$3.602 billion (or$10.25 per diluted share) in 2021. 2022 net loss included a foreign exchange loss of$732 million . - Adjusted net loss of
$988 million (or$2.76 per diluted share), compared to an adjusted net loss of$3.768 billion (or$10.74 per diluted share) in 2021. - Net cash flows from operations of
$2.368 billion compared to net cash used in operations of$1.502 billion in 2021.
Outlook
For the first quarter of 2023,
Metric | FY 2023 Guidance | FY 2024 Targets |
ASM capacity | Increase of about 24 per cent | About 100 per cent of 2019 |
Adjusted CASM | About 13 to 15 per cent | About 8 to 10 per cent above |
Adjusted EBITDA | About | About |
Leverage ratio | N/A | Approaching 1.5 by year-end |
Annual Return on invested | N/A | About 15 per cent by year- |
Cumulative free cash flow* | N/A | About $2.5 billion for |
Major Assumptions
Assumptions were made by
Air Canada provided 2024 targets via news release, dated
- For 2024,
Air Canada expects a full year ASM capacity of about 100 per cent of 2019 ASM levels; up from 95 per cent of 2019 levels, as a result of securing additional interim lift. Air Canada expects 2024 adjusted CASM to increase by about 8 to 10 per cent when compared to 2019, as compared to an increase of 2 to 4 per cent as provided at the 2022 Investor Day. The increase is due to the impact of higher passenger traffic (which increases sales and distribution costs), higher staffing levels to continuously improve operational performance and customer service levels, and general inflationary pressures.Air Canada is withdrawing its annual adjusted EBITDA margin target of about 19 per cent for full year 2024 and is now providing an adjusted EBITDA target, which is a better indicator to assess its financial performance. For 2024,Air Canada expects its adjusted EBITDA to range between about$3.5 -$4.0 billion . This new target for adjusted EBITDA range is in line with the adjusted EBITDA reflected in the margin target communicated at the 2022 Investor Day.Air Canada anticipates net debt to trailing 12-month adjusted EBITDA (leverage ratio)* to approach 1.5 by year-end 2024, up from 1.0 as provided at the 2022 Investor Day. The increase inAir Canada's targeted leverage ratio is attributable to expected higher cash used for capital expenditures, mainly due to additional freighter investments than previously forecast.- The target for annual return on invested capital (ROIC) of about 15 per cent by year-end 2024 remains unchanged from prior target.
Air Canada expects cumulative free cash flow generation of about $2.5 billion for the 2022-2024 period, as compared to about$3.5 billion provided at the 2022 Investor Day. The decrease in free cash flow is due to higher cash used for capital expenditures, as described above, partially offset by higher cash from operations.
(** |
The 2024 long-term targets provided in this news release do not constitute guidance or outlook, but rather are provided for the purpose of assisting the reader in measuring progress toward
Non-GAAP Financial Measures
Below is a description of certain non-GAAP financial measures and ratios used by
When calculating adjusted EBITDA, adjusted EBITDA margin, adjusted CASM, adjusted pre-tax income (loss), adjusted net income (loss), and adjusted earnings (loss) per share – diluted,
- Government wage subsidy, benefit plan amendments and benefit plan settlement are now classified in wages, salaries and benefits.
- Impairments is now classified as a separate line item called impairment of assets.
- Workforce reduction provisions and other special items are now classified in restructuring and transaction costs.
EBITDA and Adjusted EBITDA
EBITDA (earnings before interest, taxes, depreciation and amortization) is commonly used in the airline industry and is used by
Adjusted EBITDA Margin
Adjusted EBITDA margin (adjusted EBITDA as a percentage of operating revenues) is commonly used in the airline industry and is used by
EBITDA, adjusted EBITDA and adjusted EBITDA margin are reconciled to GAAP operating income (loss) as follows:
(Canadian dollars in millions, except where | Fourth Quarter | Full Year | ||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||
Operating loss – GAAP | $ | (28) | $ | (503) | $ | 475 | $ | (187) | $ | (3,049) | $ | 2,862 |
Add back: | ||||||||||||
Depreciation and amortization | 417 | 399 | 18 | 1,640 | 1,616 | 24 | ||||||
EBITDA | $ | 389 | $ | (104) | $ | 493 | $ | 1,453 | $ | (1,433) | $ | 2,886 |
Remove: | ||||||||||||
Government wage subsidy, net | - | (27) | 27 | - | (451) | 451 | ||||||
Benefit plan amendments | - | 6 | (6) | - | 82 | (82) | ||||||
Benefit plan settlement | - | 125 | (125) | - | 125 | (125) | ||||||
Impairment of assets | - | 24 | (24) | 4 | 38 | (34) | ||||||
Restructuring and transaction costs | - | (2) | 2 | - | 175 | (175) | ||||||
Adjusted EBITDA | $ | 389 | $ | 22 | $ | 367 | $ | 1,457 | $ | (1,464) | $ | 2,921 |
Operating revenues | $ | 4,680 | $ | 2,731 | $ | 1,949 | $ | 16,556 | $ | 6,400 | $ | 10,156 |
Operating margin (%) | (0.6) | (18.4) | 17.8 pp | (1.1) | (47.6) | 46.5 pp | ||||||
Adjusted EBITDA margin (%) | 8.3 | 0.8 | 7.5 pp | 8.8 | (22.9) | 31.7 pp |
Adjusted CASM
In calculating adjusted CASM, aircraft fuel expense is excluded from operating expense results as it fluctuates widely depending on many factors, including international market conditions, geopolitical events, jet fuel refining costs and
Adjusted CASM is reconciled to GAAP operating expense as follows:
(Canadian dollars in millions, except | Fourth Quarter | Full Year | ||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||
Operating expense – GAAP | $ | 4,708 | $ | 3,234 | $ | 1,474 | $ | 16,743 | $ | 9,449 | $ | 7,294 |
Adjusted for: | ||||||||||||
Aircraft fuel | (1,459) | (665) | (794) | (5,276) | (1,576) | (3,700) | ||||||
Ground package costs | (163) | (91) | (72) | (474) | (120) | (354) | ||||||
Government wage subsidy, net | - | 27 | (27) | - | 451 | (451) | ||||||
Benefit plan amendments | - | (6) | 6 | - | (82) | 82 | ||||||
Benefit plan settlement | - | (125) | 125 | - | (125) | 125 | ||||||
Impairment of assets | - | (24) | 24 | (4) | (38) | 34 | ||||||
Restructuring and transaction costs | - | 2 | (2) | - | (175) | 175 | ||||||
Freighter costs (excluding fuel) | (27) | - | (27) | (86) | - | (86) | ||||||
Operating expense, adjusted for | $ | 3,059 | $ | 2,352 | $ | 707 | 10,903 | 7,784 | 3,119 | |||
ASMs (millions) | 22,368 | 14,057 | 59.1 % | 82,558 | 33,384 | 147.3 % | ||||||
Adjusted CASM (cents) | ¢ | 13.68 | ¢ | 16.74 | ¢ | (3.06) | ¢ | 13.21 | ¢ | 23.32 | ¢ | (10.11) |
Free Cash Flow
Free cash flow is a non-GAAP financial measure used by
The table below reconciles free cash flow to net cash flows from (used in) operating activities for the periods indicated.
Fourth Quarter | Full Year | |||||||||||
(Canadian dollars in millions) | 2022 | 2021 (1) | $ Change | 2022 | 2021 (1) | $ Change | ||||||
Net cash flows from (used in) operating | $ | 647 | $ | 508 | $ | 139 | $ | 2,368 | $ | (1,502) | $ | 3,870 |
Additions to property, equipment, and | (327) | (378) | 51 | (1,572) | (1,062) | (510) | ||||||
Free cash flow | $ | 320 | $ | 130 | $ | 190 | $ | 796 | $ | (2,564) | $ | 3,360 |
(1) | Refer to section 12 "Accounting Policies" of |
Net Debt
Net debt is a capital management measure and a key component of the capital managed by
Net Debt to Trailing 12-Month Adjusted EBITDA (Leverage Ratio)
Net debt to trailing 12-month adjusted EBITDA ratio (also referred to as "leverage ratio") is commonly used in the airline industry and is used by
(Canadian dollars in millions) |
|
| Change | |||
Total long-term debt and lease liabilities | $ | 15,043 | $ | 15,511 | $ | (468) |
Current portion of long-term debt and lease liabilities | 1,263 | 1,012 | 251 | |||
Total long-term debt and lease liabilities (including current | 16,306 | 16,523 | (217) | |||
Less cash, cash equivalents and short and long-term | (8,811) | (9,570) | 759 | |||
Net debt | $ | 7,495 | $ | 6,953 | $ | 542 |
Adjusted EBITDA (trailing 12 months) | $ | 1,457 | (1,464) | 2,921 | ||
Net debt to adjusted EBITDA ratio | 5.1 | NM (2) | NM |
(1) | Refer to section 12 "Accounting Policies" of |
(2) | NM denotes "not meaningful". |
Adjusted Pre-tax Income (Loss)
Adjusted pre-tax income (loss) is used by
Adjusted pre-tax income (loss) is reconciled to GAAP income (loss) before income taxes as follows:
(Canadian dollars in millions) | Fourth Quarter | Full Year | ||||||||||
2022 | 2021 | $ Change | 2022 | 2021 | $ Change | |||||||
Income (loss) before income taxes – | $ | 146 | $ | (617) | $ | 763 | $ | (1,524) | $ | (3,981) | $ | 2,457 |
Adjusted for: | ||||||||||||
Government wage subsidy, net | - | (27) | 27 | - | (451) | 451 | ||||||
Benefit plan amendments | - | 6 | (6) | - | 82 | (82) | ||||||
Benefit plan settlement | - | 125 | (125) | - | 125 | (125) | ||||||
Impairment of assets | - | 24 | (24) | 4 | 38 | (34) | ||||||
Restructuring and transaction costs | - | (2) | 2 | - | 175 | (175) | ||||||
Foreign exchange (gain) loss | (316) | (22) | (294) | 732 | 52 | 680 | ||||||
Net interest relating to employee benefits | (7) | (2) | (5) | (24) | 8 | (32) | ||||||
(Gain) loss on financial instruments | (44) | (59) | 15 | (133) | 55 | (188) | ||||||
Loss on debt settlements and modifications | 31 | - | 31 | 14 | 129 | (115) | ||||||
Gain on disposal of assets | (21) | - | (21) | (21) | - | (21) | ||||||
Adjusted pre-tax loss | $ | (211) | $ | (574) | $ | 363 | $ | (952) | $ | (3,768) | $ | 2,816 |
Return on
(Canadian dollars in millions) | 12 Months Ended | |||||
$ Change | ||||||
Adjusted pre-tax income (loss) | $ | (952) | $ | (3,768) | $ | 2,816 |
Adjusted for: | ||||||
Interest expense | 909 | 749 | 160 | |||
Adjusted pre-tax loss before interest | (43) | (3,019) | 2,976 | |||
Invested capital: | ||||||
Average long-term debt and lease liabilities (including current | 16,415 | 14,756 | 1,659 | |||
Embedded derivative on convertible notes | 120 | 579 | (459) | |||
Average shareholder equity (deficiency) | (773) | 862 | (1,635) | |||
Invested capital | $ | 15,762 | $ | 16,197 | (435) | |
Return on invested capital (%) | (0.3) | (18.6) | 18.3 pp |
Adjusted Net Income (Loss) and Adjusted Earnings (Loss) per Share – Diluted
Adjusted net income (loss) and adjusted earnings (loss) per share are reconciled to GAAP net income as follows:
(Canadian dollars in millions) | Fourth Quarter | Full Year | ||||||||||
2022 | 2021 | $ Change | 2022 | 2021 | $ Change | |||||||
Net income (loss) – GAAP | $ | 168 | $ | (493) | $ | 661 | $ | (1,700) | $ | (3,602) | $ | 1,902 |
Adjusted for: | ||||||||||||
Government wage subsidy, net | - | (27) | 27 | - | (451) | 451 | ||||||
Benefit plan amendments | - | 6 | (6) | - | 82 | (82) | ||||||
Benefit plan settlement | - | 125 | (125) | - | 125 | (125) | ||||||
Impairment of assets | - | 24 | (24) | 4 | 38 | (34) | ||||||
Restructuring and transaction costs | - | (2) | 2 | - | 175 | (175) | ||||||
Foreign exchange (gain) loss | (316) | (22) | (294) | 732 | 52 | 680 | ||||||
Net interest relating to employee benefits | (7) | (2) | (5) | (24) | 8 | (32) | ||||||
(Gain) loss on financial instruments | (44) | (59) | 15 | (133) | 55 | (188) | ||||||
Loss on debt settlements and modifications | 31 | - | 31 | 14 | 129 | (115) | ||||||
Gain on disposal of assets | (21) | - | (21) | (21) | - | (21) | ||||||
Income tax, including for above reconciling | (28) | (127) | 99 | 140 | (379) | 519 | ||||||
Adjusted net loss | $ | (217) | $ | (577) | $ | 360 | $ | (988) | $ | (3,768) | $ | 2,780 |
Weighted average number of outstanding | 358 | 358 | - | 358 | 351 | 7 | ||||||
Adjusted loss per share – diluted | $ | (0.61) | $ | (1.61) | $ | 1.00 | $ | (2.76) | $ | (10.74) | $ | 7.98 |
(1) | The deferred income tax expense recorded in other comprehensive income related to remeasurements on employee benefit liabilities is offset by a deferred income tax recovery which was recorded through |
For further information on
Fourth Quarter and Full Year 2022 Conference Call
Media and the public may access this call on a listen-in basis. Details are as follows:
Live audio webcast: | https://edge.media-server.com/mmc/p/3468bfxe |
By telephone: | 416-340-2217 or 1-800-898-3989 (toll free) |
Please allow 10 minutes to be connected to the conference call. | |
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release includes forward-looking statements within the meaning of applicable securities laws. Forward-looking statements relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These statements may involve, but are not limited to, comments relating to guidance, strategies, expectations, planned operations or future actions. Forward-looking statements are identified using terms and phrases such as "preliminary", "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions.
Forward-looking statements, by their nature, are based on assumptions including those described herein and are subject to important risks and uncertainties. Forward-looking statements cannot be relied upon due to, among other things, changing external events and general uncertainties of the business of
Factors that may cause results to differ materially from results indicated in forward-looking statements include economic and geopolitical conditions such as the military conflict between
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Selected Financial Metrics and Statistics
The financial and operating highlights for
(Canadian dollars in millions, except per share data or | Fourth Quarter | Full Year | ||||
Financial Performance Metrics | 2022 | 2021 | $ Change | 2022 | 2021 | $ Change |
Operating revenues | 4,680 | 2,731 | 1,949 | 16,556 | 6,400 | 10,156 |
Operating loss | (28) | (503) | 475 | (187) | (3,049) | 2,862 |
Operating margin (1) (%) | (0.6) | (18.4) | 17.8 pp (10) | (1.1) | (47.6) | 46.5 pp |
Adjusted EBITDA (2) | 389 | 22 | 367 | 1,457 | (1,464) | 2,921 |
Adjusted EBITDA margin (2) (%) | 8.3 | 0.8 | 7.5 pp | 8.8 | (22.9) | 31.7 pp |
Income (loss) before income taxes | 146 | (617) | 763 | (1,524) | (3,981) | 2,457 |
Net income (loss) | 168 | (493) | 661 | (1,700) | (3,602) | 1,902 |
Adjusted pre-tax loss (2) | (211) | (574) | 363 | (952) | (3,768) | 2,816 |
Adjusted net loss (2) | (217) | (577) | 360 | (988) | (3,768) | 2,780 |
Total liquidity (3) | 9,824 | 10,528 | (704) | 9,824 | 10,528 | (704) |
Net cash flows from (used in) operating activities (4) | 647 | 508 | 139 | 2,368 | (1,502) | 3,870 |
Free cash flow (2) | 320 | 130 | 190 | 796 | (2,564) | 3,360 |
Net debt (2) | 7,495 | 6,953 | 542 | 7,495 | 6,953 | 542 |
Diluted earnings (loss) per share | 0.41 | (1.38) | 1.79 | (4.75) | (10.25) | 5.50 |
Adjusted loss per share (2) | (0.61) | (1.61) | 1.00 | (2.76) | (10.74) | 7.98 |
Operating Statistics (5) | 2022 | 2021 | Change | 2022 | 2021 | Change |
Revenue passenger miles ("RPMs") (millions) | 18,525 | 9,612 | 92.7 | 66,495 | 21,045 | 216.0 |
Available seat miles ("ASMs") (millions) | 22,368 | 14,057 | 59.1 | 82,558 | 33,384 | 147.3 |
Passenger load factor % | 82.8 % | 68.4 % | 14.4 pp | 80.5 % | 63.0 % | 17.5 pp |
Passenger revenue per RPM ("Yield") (cents) | 21.9 | 21.2 | 3.3 | 21.4 | 21.4 | - |
Passenger revenue per ASM ("PRASM") (cents) | 18.2 | 14.5 | 25.1 | 17.2 | 13.5 | 28.0 |
Operating revenue per ASM (cents) | 20.9 | 19.4 | 7.7 | 20.1 | 19.2 | 4.6 |
Operating expense per ASM ("CASM") (cents) | 21.1 | 23.0 | (8.5) | 20.3 | 28.3 | (28.3) |
Adjusted CASM (cents) (2) | 13.7 | 16.7 | (18.3) | 13.2 | 23.3 | (43.4) |
Average number of full-time-equivalent ("FTE") | 33.2 | 25.2 | 32.0 | 30.5 | 19.8 | 54.2 |
Aircraft in operating fleet at period-end (7) | 345 | 337 | 2.4 | 345 | 337 | 2.4 |
Seats dispatched (thousands) | 12,690 | 8,772 | 44.7 | 47,038 | 21,105 | 122.9 |
Aircraft frequencies (thousands) | 89.9 | 71.5 | 25.6 | 340.5 | 175.3 | 94.2 |
Average stage length (miles) (8) | 1,763 | 1,602 | 10.0 | 1,755 | 1,582 | 11.0 |
Fuel cost per litre (cents) | 134.3 | 83.9 | 60.1 | 130.1 | 74.7 | 74.0 |
Fuel litres (thousands) | 1,084,569 | 791,581 | 37.0 | 4,056,788 | 2,108,144 | 92.4 |
Revenue passengers carried (thousands) (9) | 10,098 | 5,836 | 73.0 | 36,144 | 13,192 | 174.0 |
(1) | Operating margin is a supplementary financial measure and is defined as operating income (loss) as a percentage of operating revenues. |
(2) | Adjusted pre-tax income (loss), adjusted net income (loss), adjusted earnings (loss) per share, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted EBITDA margin, free cash flow, net debt and adjusted CASM are non-GAAP financial measures, capital management measures, non-GAAP ratios or supplementary financial measures. 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 section "Non-GAAP Financial Measures" of this release for descriptions of |
(3) | Total liquidity refers to the sum of cash, cash equivalents, short and long-term investments, and the amounts available under |
(4) | Refer to section 12 "Accounting Policies" of |
(5) | Except for the reference to average number of FTE employees, operating statistics in this table include third party carriers operating under capacity purchase agreements with |
(6) | Reflects FTE employees at |
(7) | The number of aircraft in |
(8) | Average stage length is calculated by dividing the total number of available seat miles by the total number of seats dispatched. |
(9) | Revenue passengers are counted on a flight number basis (rather than by journey/itinerary or by leg) which is consistent with the IATA definition of revenue passengers carried. |
(10) | "pp" denotes percentage points and refers to a measure of the arithmetic difference between two percentages. |
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