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MONTREAL - Air Canada (TSX:AC) reported record fourth quarter revenue of $5.4 billion, up 4% YoY, meeting analyst expectations for adjusted earnings per share. The airline maintained its 2025 outlook despite industry headwinds.
For the fourth quarter, Air Canada posted adjusted earnings per share of $0.25, in line with analyst estimates. Revenue of $5.4 billion rose 4% compared to the same period last year, driven by a 2% increase in available seat miles (ASMs) and a 2% improvement in total revenue per available seat mile (TRASM).
The company's EBITDA margin for the quarter reached 12.9%, surpassing analyst expectations of 11.8%. Cost per available seat mile, excluding fuel (CASM-ex), increased 6% in Q4.
Air Canada maintained its 2025 guidance, projecting ASMs to grow 3-5% YoY. The airline expects CASM-ex to increase 3-5%, with guidance ranging from 14.25 to 14.50 cents. Adjusted EBITDA is forecast between $3.4 billion and $3.8 billion for the year.
"We executed our plan, making adjustments where necessary, achieving nearly $3.6 billion in annual adjusted EBITDA and free cash flow of $1.3 billion," said Michael Rousseau, President and CEO of Air Canada.
The company's leverage ratio stood at 1.4x as of December 31, 2024, up from 1.1x a year ago.
Air Canada repurchased $473 million worth of shares in 2024 as part of its share buyback program.
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