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Air Canada reports 2nd Q 2025 results: Operating revenues of $5.632b.

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MONTREAL – Air Canada reported its second quarter 2025 financial results.

“Air Canada’s second quarter 2025 results showcase the airline’s many strengths in the face of a challenging environment. We generated operating revenues exceeding $5.6 billion, up $113 million from the previous year. Operating income was $418 million, with an operating margin of 7.4%, and adjusted EBITDA was $909 million, with an adjusted EBITDA margin of 16.1%. Operationally, we had an excellent spring, leading all major North American carriers in on-time performance for both May and June, which corresponded with strong gains in customer service scores. We remained disciplined and consistent in executing on a long-term plan that is rooted in Air Canada’s proven commercial strategy, while navigating macroeconomic uncertainty and geopolitical tensions. We have strategically redirected capacity to high-demand markets and captured demand for premium services, leveraging the breadth and strength of our global network. Our results were further lifted by strong performances by Air Canada Cargo, Air Canada Vacations, and Aeroplan – each a key pillar of our diversified business,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.

“Our distinctive product offerings and the unwavering dedication of our employees were recognized at the Skytrax World Airline Awards. We are proud to have been recognized as the Best Airline in North America and as the sole North American carrier ranked among the global top 20. Additionally, we have received additional accolades, including Best Cabin Crew in both Canada and North America. I extend my heartfelt thanks to our employees for their commitment to excellence and professionalism in safely transporting our 11.6 million customers this quarter with care and class.”

“A key pillar of our strategy is delivering value to our shareholders through effective capital allocation programs. Building on the successful reinstatement in 2024 of our normal course share purchase program, we completed a $500 million substantial issuer bid during the quarter, purchasing 26.6 million shares for cancellation. Since then, we have also fully repaid our convertible notes in cash upon maturity in July. As we look ahead, we are excited about our upcoming fleet additions and the opportunities they will unlock. Our confidence in our business outlook remains solid and we are reaffirming our financial guidance for the full year 2025.”

Second Quarter 2025 Financial Results
  • Operating revenues of $5.632 billion
  • Operating expenses of $5.214 billion
  • Operating income of $418 million with an operating margin of 7.4% and adjusted EBITDA of $909 million with an adjusted EBITDA margin of 16.1%
  • Adjusted pre-tax income of $300 million
  • Net income of $186 million and diluted earnings per share of $0.51
  • Adjusted net income of $207 million and adjusted earnings per diluted share of $0.60
  • Adjusted CASM* of 14.4 cents
  • Net cash flows from operating activities of $895 million and free cash flow of $183 million
Outlook

For the third quarter of 2025, Air Canada plans to increase its ASM capacity between 3.25% and 3.75% from the same quarter in 2024.

For the full year 2025, Air Canada is reiterating its guidance previously provided on May 8, 2025 and updating certain major assumptions. Full year 2025 guidance is as follows:

Metric

 

2025 Guidance

 

Adjusted EBITDA $3.2 billion to $3.6 billion
ASM capacity 1% to 3% increase versus 2024
Adjusted CASM 14.25 ¢ to 14.50 ¢
Free cash flow Break even +/- $200 million
Major Assumptions

Air Canada made assumptions in providing its guidance—including a marginal Canadian GDP growth for 2025. Air Canada now assumes that the Canadian dollar will trade, on average, at C$1.39 per U.S. dollar for the full year 2025 (previously $1.40) and that the price of jet fuel will average C$0.92 (previously C$0.88) per litre for the full year 2025.

Air Canada’s guidance constitutes forward-looking information within the meaning of applicable securities laws and is subject to important risks and uncertainties, including in relation to statements or actions by governments and uncertainty relating to the imposition of (or threats to impose) tariffs on Canadian exports or imports and their resulting impacts on the Canadian, North American and global economies and travel demand. Please see the discussion below under Caution Regarding Forward-looking Information.

2028 Targets

On December 17, 2024, Air Canada announced its long-term 2028 financial targets and 2030 aspirations described below:

Metric

 

2028 Targets

 

2030 Aspirations

 

Operating revenues Approximately $30 billion Exceed
$30 billion
Adjusted EBITDA margin* Greater than or equal to 17% Between 18% and 20%
Net cash flows from operating activities as a percentage of adjusted EBITDA* Approximately 90% Approximately 90%
Additions to property, equipment and intangible assets as a percentage of operating revenues* Lower than or equal to 12% Lower than 12%
Free cash flow margin* Approximately 5% Approximately 5%
Return on invested capital* Not provided Greater than or equal to 12%
Fully diluted share count Lower than 300 million shares Lower than 300 million shares

The article Air Canada reports 2nd Q 2025 results: Operating revenues of $5.632b. first appeared in TravelDailyNews International.



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Top 35 Travel Trends in August

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The 2025 August travel trends reveal a world in transformation, where nostalgia meets innovation and wellness intersects with luxury. This month’s top developments highlight how travel continues to evolve with purpose-driven experiences, tech-driven personalization, and imaginative brand partnerships that redefine how we explore and unwind.

At the forefront of digital innovation, Mindtrip debuts a new AI-powered mobile app, offering real-time, hyper-personalized travel guidance that adapts to users on the go. United Airlines also upgraded its app with a connecting flight-centric feature, simplifying complicated itineraries for smoother travel. Meanwhile, the luxury sector is expanding with a renewed focus on wellbeing. Marriott International’s Luxury Group launched its ‘Luxury Wellbeing Series 2025’ across top Asian destinations, while Loreto’s Mailena, debuting in late summer 2026, introduces a restorative adults-only retreat to Mexico’s Baja Peninsula.

Nostalgia is trending, too as ‘Pan Am Journeys’ by Private Air, under license from the iconic Pan American World Airways, offers retro-inspired, private air travel experiences. Similarly, Carl Friedrik’s ‘Carry-on X Core Collection’ nods to mid-century aviation aesthetics with sleek, functional design. On the water, Viking makes waves by entering the Indian river cruise market with the introduction of the ‘Viking Brahmaputra,’ bringing high-end cruising to the subcontinent. Nox, looking to the future of European rail travel, announces plans for 2027 overnight trains with private, comfort-first cabins—reshaping the night train experience.

On the lifestyle side, Four Seasons adds flair with its ‘Resort Pajamas Collection,’ while Groupe GM and Hei Poa debut a soothing, protective sun care hotel amenity line. Additionally, ‘The Cayman Club’ by Cayman Jack provides travelers with a sense of calm amid travel disruptions, and ‘Camp Unwritten’ by World of Hyatt and Reese’s Book Club invites guests to glamp with books, nature, and luxury.

Altogether, August’s travel trends reflect a traveler mindset increasingly shaped by individuality, relaxation, and meaningful escape—one that seeks not just destinations, but immersive, personal journeys.



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Nepal’s Royal Tulip opens Doors

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In a major push to elevate Nepal’s hospitality landscape, Sarovar Hotels—part of the Louvre Hotels Group—has launched Royal Tulip Chitwan, the brand’s premium entry into the country. Situated at the edge of Chitwan National Park, a UNESCO World Heritage Site, the new resort seamlessly blends luxury, nature, and Nepali culture. The opening marks the debut of the Royal Tulip brand in Nepal and signals growing confidence in the country’s tourism potential.

 

Developed by KTM Hospitality (a KTM Group Holdings company), the resort spans over 4 acres and offers 65 upscale rooms and villas. Accommodation options include private Pool Villas, serene Water Villas, and unique Machan-style stays that elevate the guest experience. With a focus on nature-inspired design and top-tier comfort, the resort is positioned as an ideal destination for luxury travellers, wildlife enthusiasts, and honeymooners alike.

 

Royal Tulip Chitwan goes beyond just accommodation, offering world-class facilities like a luxury spa, fitness centre, swimming pool, and multiple gourmet dining options. Guests can enjoy meals at Majhighar, Forest Flame, the revolving deck Machan, or unwind at the stylish Tanavi Sports Bar. The emphasis is on immersive experiences rooted in local culture and cuisine, combined with global service standards.

 

Ajay K. Bakaya, Chairman of Sarovar Hotels, emphasised the strategic significance of this launch, noting Nepal’s increasing appeal among Indian and international tourists. He stated that Royal Tulip Chitwan is designed to offer a luxurious yet culturally authentic retreat. Rameshwar Shah of KTM Hospitality echoed this sentiment, highlighting the resort’s role in promoting Chitwan as a luxury eco-tourism hotspot.

 

With this debut, Louvre Hotels Group is expanding its South Asian footprint by targeting high-potential, experience-driven markets. Royal Tulip Chitwan is expected to become a landmark for leisure travel in Nepal, attracting guests seeking a tranquil yet luxurious escape surrounded by nature and culture.



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Wyndham expands in Wayanad Hills

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Wyndham Hotels & Resorts is strengthening its footprint in South India with the upcoming Ramada by Wyndham Wayanad Vythiri, a 52-room upscale hotel scheduled to open in 2026. Nestled in the lush greenery of Vythiri, this property is being developed by local entrepreneur Asok Thirikkoth. The hotel is poised to cater to a growing wave of both domestic and international travellers seeking wellness and nature-driven escapes.

The hotel will feature modern amenities, including a full-service spa, all-day dining, meeting and event spaces, and rooms designed for both leisure and business needs. This launch is expected to enhance the hospitality landscape of Wayanad, a region gaining popularity for eco-tourism and holistic wellness offerings.

Asok Thirikkoth emphasised that the Ramada brand’s arrival aligns with the vision to elevate local tourism. Wyndham’s Rahool Macarius also highlighted Wayanad’s potential as a high-demand destination for eco-conscious travelers, signaling the brand’s long-term commitment to Tier-2 markets.

With over 9,300 hotels globally, Wyndham’s strategic expansion in India continues, reflecting its focus on emerging leisure destinations and robust regional collaborations that prioritise sustainable growth and premium guest experiences.



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