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)