By Adriano Marchese

Air Canada said Tuesday it expects continued growth in capacity in 2025 and also laid out aspirational targets to see it through the end of the decade.

The company also reaffirmed its 2024 full year guidance and expects operating revenue of C$22 billion ($15.45 billion), with a 5% growth in capacity, measured in available seat miles, over the 99.01 billion logged in 2023. It expects adjusted cost per available seat mine to see 2% growth from the 13.49 Canadian cents last year.

Analysts expect C$21.98 billion in revenue for 2024, according to FactSet.

In 2025, the Canadian flagship airline expects capacity to grow between 3% and 5% over 2024 levels. Adjusted cost per available seat mile is expected to rise to between 14.25 Canadian cents and 14.50 cents.

Adjusted earnings before interest, taxes, depreciation and amortization is expected to be between C$3.4 billion and C$3.8 billion in 2025, compared with C$3.5 billion expected in 2024.

Analysts on FactSet expect 2024 adjusted Ebitda of C$3.51 billion and C$3.66 billion in 2025.

The company assumes moderate Canadian GDP growth in 2024 and 2025, with the Canadian dollar trading on average at C$1.36 and C$1.40 to the U.S. dollar, respectively. Jet fuel is expected to average C$1.00 and C$0.95 a litre in 2024 and 2025, respectively.

Looking beyond, the company has set long-term targets for 2028 and aspirations for 2030. The company expects operating revenues to be about C$30 billion in 2028, and then to grow beyond that figure in 2030.

The airline also expects adjusted Ebitda margin to be 17% or more in 2028 before rising between 18% and 20% in 2030.

Air Canada cautioned, however, that these 2028 and 2030 targets aren't considered guidance or outlook, but "rather are provided for the purpose of assisting in measuring progress towards Air Canada's objective."

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

December 17, 2024 07:02 ET (12:02 GMT)

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