Air Canada Posted $837 Million In Revenues, $1.2 Billion Net Loss In Q2 2021

Air Canada (TSX: AC) reported this morning its Q2 2021 financial results, highlighting revenues of $837.0 million. This is a notable increase from revenue figures last quarter at $729.0 million or last year at $527.0 million.

The airline slightly improved its net losses to $1.2 billion this quarter from $1.3 billion in Q1 2021 and $1.5 billion in Q2 2020. The quarterly net loss translates to $3.31 loss per share.

On a year-on-year basis, the Canadian carrier increased its revenue passenger miles this quarter to 1.7 billion from 783.0 million and its available seat miles to 4.0 billion from 2.2 billion. In Q2 2021, the company was able to fly 1.2 million passengers compared to Q2 2020’s 480,000.

“The COVID-19 pandemic continued to weigh on Air Canada and the Canadian airline industry in the second quarter, with its impact on travel reflected in our results,” Air Canada President and CEO Michael Rousseau said in a statement. He added that the June announcement of removing the quarantine period for fully vaccinated returning Canadians and travel restrictions led to an increase in flight bookings. “We expect this trend to further increase following the July 19th announcement communicating positive changes to come for Canadian travel restrictions,” he added.

The company ended Q2 2021 with higher unrestricted liquidity of $9.8 billion compared to $6.6 billion last quarter and $9.1 billion last year.

The firm burned net cash of $745.0 million for the quarter or approximately $8.0 million per day. This figure compares to last quarter’s net cash burn of $1.3 billion or $14 million per day. The company further projects net cash burn for next quarter to be between $280 million-$460 million or roughly $3 million-$5 million per day.

Air Canada plans to increase its available seat miles in Q3 2021 by 85% more than Q3 2020 numbers. Although, based on industry performance due to seasonality, the capacity is expected to decrease by 65% next quarter compared to this quarter.

On July 2021, the Canadian airline announced its summer schedule, opening 55 routes and 34 destinations in the US and operating up to 220 US-Canada flights per day.

Air Canada last traded at $25.06 on the TSX.

Information for this briefing was found via Sedar and Air Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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