Air Canada (TSX: AC) reported this morning its Q3 2021 financial results, highlighting revenues of $2.1 billion. This is a notable increase from revenue figures last quarter at $837.0 million or last year at $757.0 million.
“We are encouraged by the favourable revenue and traffic trends in the third quarter, with strong increases in key passenger geographic segments, a record cargo performance and significant improvements in both Air Canada Vacations and Aeroplan,” said Air Canada CEO Michael Rousseau.
However, with operating expenses amounting to $2.5 billion, the company still ended with an operating loss. The airline improved its net losses to $640 million this quarter from $1.2 billion in Q2 2021 and $685 million in Q3 2020. The quarterly net loss translates to $1.79 per share.
The Canadian carrier also increased its revenue passenger miles this quarter to 7.9 billion from 1.7 billion last quarter and 2.5 billion last year. Its available seat miles increased to 11.1 billion from 4.0 billion last quarter and 5.9 billion last year.
The firm ended the quarter with a cash and cash equivalents balance of $5.2 billion from a starting balance of $2.7 billion. The influx of cash is attributable to approximately $6.8 billion in proceeds from borrowings.
“Another major accomplishment was the series of financing transactions completed in August, allowing us to lower our cost of borrowing, extend the maturities of our corporate debt, and raise gross proceeds of about $7.1 billion,” Rousseau added.
The company ended Q3 2021 with higher unrestricted liquidity of $14.4 billion compared to $9.8 billion last quarter and $8.2 billion last year.
On its balance sheet, the airline’s balance of current assets at the end of the quarter came in at $9.9 billion while current liabilities ended at $6.1 billion.
In Q3 2021, the company was able to fly 5.1 million passengers compared to 1.2 million passengers last quarter and 1.7 million passengers last year.
Air Canada last traded at $23.01 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.