Air Canada (TSX: AC) this morning reported its first quarter 2021 financial results, reporting revenues of $729 million, along with a net loss of $1.3 billion. Revenues were down approximately 80% on a year over year basis as the airline operator continues to struggle with the pandemic.
The decline in revenues is evident when looking at the firms revenue passenger miles, which were down 89.5% year over year, falling to just 1.8 billion from the prior years figure of 17.5 billion. On an operational basis, it translated to an operating loss of $1.0 billion for the quarter, while the company managed to burn $1.3 billion during the quarter, which averages out to $14 million a day in cash used.
As a sign of just how expensive operating an airline is during a pandemic, the company saw its liquidity decline from $8.0 billion to $6.6 billion over the course of the quarter. Subsequent to the quarters end however it managed to secure $5.9 billion in relief from the federal government.
Looking forward, the company indicated that it intends to double its available seat miles, or ASM, from the second quarter of 2020. This however still amounts to an 84% decrease from 2019 levels. Cash burn is expected to be between $1.18 billion and $1.37 billion for the quarter.
Air Canada last traded at $24.16 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.
