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Air Canada eyes strong revenue growth by 2028, banks on robust leisure travel demand
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Air Canada eyes strong revenue growth by 2028, banks on robust leisure travel demand
Dec 17, 2024 5:02 AM

Dec 17 (Reuters) - Air Canada ( ACDVF ) said on Tuesday it

was targeting a 36% jump in its 2028 operating revenue from the

current year, riding a wave of strong demand for leisure travel

across domestic and international routes.

Airlines worldwide are optimistic about the future of air

travel, driven by a post-pandemic surge as travelers shift their

priorities from goods to experiences.

Air Canada ( ACDVF ) also forecast its 2025 adjusted earnings before

interest, taxes, depreciation, and amortization (EBITDA) in the

range of C$3.4 billion ($2.38 billion) to C$3.8 billion,

compared with analysts' estimates of C$3.63 billion according to

data compiled by LSEG.

"Our strategy, which builds on and leverages the unique

strengths developed over the last decade, is to rise even higher

with consistent margin expansion and structural cash generation

while maintaining a strong balance sheet and a responsible risk

profile," CEO Michael Rousseau said.

It also plans to expand its network. Earlier this year, the

Montreal-based carrier revealed plans to increase flights to

China and to add capacity to other Asia-Pacific routes.

The Canadian flag carrier is targeting an operating revenue

of about C$30 billion in 2028, with an adjusted core profit

margin of 17% or greater.

It expects to report an operating revenue of approximately

C$22 billion this year with a core profit margin of about 16%.

"We believe we are very well positioned to execute our

long-term plans," Rousseau added.

The airline is expected to provide more details into its

future plans at its investor day scheduled for Tuesday.

($1 = 1.4277 Canadian dollars)

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