Air Canada : efficient and resilient
The first quarter in Canada is always very difficult for airlines, which more often than not have a deficit during this period. The MAX crisis added an additional challenge that Air Canada has brilliantly raised by posting a net income of $ 127 million for the period compared to a deficit of $ 89 million for the corresponding period in 2018. Yet, Air Canada is one of the airlines most affected by the withdrawal of the MAX of which it had 24 in operation representing 20% of its fleet of single-aisle aircraft. The MAXs carried 9,000 to 12,000 passengers a day before their withdrawal. After only a few weeks, Air Canada was able to cover 96% to 97% of all capacity needs.
Despite all of this, Air Canada posted 4.2% growth in passenger volumes in the first quarter, and its finances continued to improve while its available cash now stands at $ 6.88 billion. Transborder traffic growth continues to be solid with a 6.4% increase and business class revenues increased 12.4%.
The least we can say is that Air Canada is going through the crisis of the MAX with a facility that surprises. Long regarded as the friendly little company of the north by its American competitors, it is now able to compete with the three giants south of the border, with better prices and better service.
When questioned about a eventual takeover of the Transat AT Group, Air Canada President, Calin Rovinescu, preferred to bypass the issue. In other words, he did not say no categorically. With $ 6.88 billion in liquidity, Air Canada has the means to acquire the Transat A.T. group without problems. The real obstacle is the competition bureau that could block the deal.
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