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Highlights
- Air Canada stock expanded by 56.2 per cent in the last 12 months, and during this period, it also outperformed the TSX Composite Index.
- Air Canada's operating revenues were C$ 2.1 billion, which tripled from the operating revenues of C$ 757 million in the third quarter of 2020.
- Notably, the national carrier achieved a net cash flow of C$ 153 million.
Air Canada (TSX:AC) announced financial results for the third quarter of 2021 and said it has managed to narrow down its operating loss.
Canada's decision to open its borders and increased flight operations have helped the national carrier to take steps to recover from the pandemic losses.
In Q3 2021, Air Canada's operating revenues were C$ 2.1 billion, which tripled from the C$ 757 million in the third quarter of 2020.
At the end of the trading session on Monday, November 1, AC stock was up by 3.7 per cent and closed at C$ 23.01 per share. The surge in the airlines stock was due to the upcoming Q3 results as investors hoped for better results than Q3 2020.
That said, let's take a closer look at Air Canada's performance and find out if it is worth exploring:
Air Canada's (TSX:AC) stock and financial performance
Air Canada narrowed down its negative earnings before interest, taxes, depreciation, and amortization (EBITDA) from C$ 554 million in Q3 2020 to C$ 67 million in the third quarter of this year.
Notably, the national carrier achieved a net cash flow of C$ 153 million, around C$ 520 million higher in comparison to the midpoint of the cash burn guidance provided for Q3 2021.
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The operating loss was C$ 364 million in this year's third quarter, down from C$ 785 million in Q3 2020. Meanwhile, Air Canada achieved record cargo revenues and crossed the C$ 1 billion mark year-to-date (YTD).
Air Canada stock expanded by 56.2 per cent in the last 12 months, and during this period, it also outperformed the TSX Composite Index as it grew by only 14.6 per cent.
Also Read: Is Air Canada (TSX:AC) a Canadian airline stock to buy?
At market close on November 1, the AC stock was up by 59 per cent compared to a 52-week low of C$ 14.48 apiece on November 2, 2020.
Bottom line
Air Canada seems to be recovering from the pandemic losses. Michael Rousseau, Chief Executive Officer and President of the national carrier, said that the favourable revenue and traffic trends in Q3 2021 helped the company post better financial results.
Substantial increases in key passenger geographic segments and record cargo performance helped the company achieve a net cash flow of C$ 153 million.
