Air Canada Releases Q4 Results and Announces Premium Economy Cabin
Air Canada announced today a profitable fourth quarter and calendar year for the first time since 2008. Posting earnings $8 million in the fourth quarter of 2012, $0.03 per diluted share, Air Canada saw definite operating revenue improvement compared to a loss of $60 million in Q4 of 2011.
Annual revenue was also up. Air Canada reached $131 million or $.45 per diluted share, which was increased from 2011 which came in at a loss of $249 million.
"I am extremely pleased to report a strong fourth quarter and a full year net profit for Air Canada of $131 million in 2012," said Calin Rovinescu, President and Chief Executive Officer. "These results reflect the success of Air Canada's ongoing transformation aligned with strict cost control and disciplined capacity management. In particular, the strong revenue performance of our international network was led by significant improvements, not only in the Pacific region but also on the Atlantic where we overcame challenges faced by the industry earlier in the year. Our focus remains firmly fixed on further cost reduction and increased revenue generation, including improved yields, positioning us well for the future.
Also announced today from Air Canada was the introduction of its International Premium Economy cabin. Guests will soon be able to take advantage of the new cabin which offers seats that are wider and have an increased recline, seven more inches of legroom than Economy, premium meals and complimentary bar service as well as priority check-in and baggage delivery. The new cabin will be offered starting July 11th, 2013 on Air Canada’s Montreal to Paris flights.
Additionally, Air Canada will be expanding and modernizing its fleet with the addition of five new Boeing 777-300ER aircraft which will arrive after previously announced Boeing aircraft in November and December of 2013 and February 2015. These additions will round out Air Canada’s Boeing 777 fleet to 23 aircraft.
"With the introduction of Premium Economy, Air Canada will begin offering customers a new, high-value option for enhanced comfort and service on international flights," said Ben Smith, Executive Vice President and Chief Commercial Officer. "The delivery of five new Boeing 777-300ER aircraft over the next 12 months provides us with the right opportunity to launch a new cabin of service that will be offered on more of our international flights over time as we take delivery of new 787 aircraft. We will continue to adapt our product to ensure our customers have competitive options to choose from - whether traveling on Air Canada mainline routes or with our leisure carrier, Air Canada rouge, to its vacation destinations."