MIAMI – Today, Air Canada (AC) has unveiled its second quarter results. The airline reports a loss of US$1,75bn, which represents a 90% decline in its revenue.
In response, AC CEO, Calin Ronvinescu claimed that Canada’s reopening and restoration of economic activity is a “tremendous urgency.”
According to Ronvinescu, the carrier saw a drop of 90% in its revenue and of 96% in its passenger revenue during Q2 2020.
Regarding income loss, the company reported US$527m down from US$4.74bn reported in Q2 2019.
In passenger revenue, cargo operations overcome regular ones. The airline carried less than 4% of travelers during the quarter, said Ronvinescu.
Cargo income increased 52% to US$269m while passenger revenue fell to US$207m.
In addition, the company lost US$6.44 per diluted share in comparison with US$1.26 per share net income in Q2 2019.
In order to save costs, AC reduced some management and front-line jobs. Following the same line, it retired 79 aircraft, totaling 30% of its fleet.
Thus, the airline had to suspend some domestic routes and cut its network capacity by 92%
In contrast, the AC Q2 report showed it saved US$1.3m in workers cuts and US$5.5bn in new equity, debt and aircraft financings.
As result, the company ended the quarter with US$9.12bn in cash.
Urgent Borders Reopening
In the Q2 release, Ronvinescu also stated these results confirm the devastion left behind by COVID-19. These include government-imposed travel and border restrictions plus quarantine requirements.
According to the CEO, the above measures have been “among the most severe in the world.” Consequently, most of Canada’s commercial aviation shut down.
The Canadian government should take “reasonable steps” to safely reopen the country and restore its economic activity, concluded the CEO.