Air Canada updates financial targets for 2019 to 2021

Air Canada updated (28-Feb-2019) its financial targets for the period from 2019 to 2021, as follows:

• EBITDA margin: From 19% to 22% p/a;
• ROIC: From 16% to 20% p/a;
• Cumulative free cash flow: From CAD4 billion (USD3 billion) to CAD4.5 billion (USD3.4 billion);
• Projected free cash flow: From CAD400 million (USD303 million) to CAD600 million (USD455 million) in 2019;
• Leverage ratio: No more than 1.2 by the end of 2019;

The airline also expects relatively modest Canadian GDP growth from 2019 to 2021, with the Canadian dollar expected to trade at approximately CAD1.32 per USD1 in 2019, CAD1.29 per USD1 in 2020 and CAD1.28 per USD1 in 2021. Air Canada estimated the price of jet fuel to be approximately CAD0.82 (USD0.62) per litre in 2019, CAD0.84 (USD0.63) per litre in 2020 and CAD0.85 (USD0.64) per litre in 2021. Mr Rovinescu stated the airline has "repeatedly met or exceeded virtually all" key financial targets since 2013. [more - original PR]