Air Canada Reports Q1 Revenues Of $729 Million, Net Loss Of $1.3 Billion

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.

Video Articles

Silver @ $36 & We’re Still 200M Oz Short | Paul Andre Huet – Americas Gold and Silver

Gold’s Wild Bull Run: Are Markets About to Break? | Mike McGlone

First Majestic Silver: The Santa Elena Mine

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

Datametrex Provides Clarity Regarding Air Canada Twitter Comments

Datametrex AI (TSXV: DM) this morning looked to clear up some questions being posed by...

Friday, December 11, 2020, 08:12:28 AM

Lost Luggage? Air Canada Might Have Already Donated It To Charity

An Ontario couple waited more than three months to be reunited with their lost luggage,...

Thursday, January 26, 2023, 06:21:00 AM

Trudeau Government Set to Begin Bailout Talks Despite Airlines Engaging In ‘Deceitful’ Customer Baiting Practices

The federal government has recently announced it will begin discussions regarding possible financial support for...

Monday, November 9, 2020, 02:15:00 PM

Air Canada Says Travel Demand “Very Stable” As Airline Reports Net Income Surge In Q3 2023

Air Canada (TSX: AC) has reported gains in its latest quarter amidst the economic challenges...

Monday, October 30, 2023, 02:35:21 PM

Air Canada Senior Execs to Return 2020 Bonuses Following Ire From Ottawa

Despite receiving $5.9 billion in emergency government aid to help alleviate pandemic-related financial hardships, it...

Monday, June 7, 2021, 02:25:00 PM