Air Canada raises financial goals through 2021
Air Canada has set higher financial expectations through 2021 as its international network expands, targeting a 19-22% annual modified profit margin through the period and an annual return on invested capital of 16-20%. These expectations announced Thursday are more ambitious than those the airline presented to investors in 2017, which included a 13-16% return on invested capital from 2018 to 2020 and a modified annual margin of 17-20% through 2020. The airline also projects US$4b-$4.5b cumulative free cash flow from 2019 until 2021, excluding net proceeds related to closing the Aeroplan transaction. That’s up from the $2b-$3b cumulative free cash flow originally projected from 2018 to 2020. The airline targeted a leverage ratio of 1.2 by the end of 2019, consistent with the earlier goal for a 1.2 ratio by the end of 2020. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-03-01/star/air-canada-raises-financial-goals-through-2021
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Air Canada raises financial goals through 2021
Air Canada has set higher financial expectations through 2021 as its international network expands, targeting a 19-22% annual modified profit margin through the period and an annual return on invested capital of 16-20%. These expectations announced Thursday are more ambitious than those the airline presented to investors in 2017, which included a 13-16% return on invested capital from 2018 to 2020 and a modified annual margin of 17-20% through 2020. The airline also projects US$4b-$4.5b cumulative free cash flow from 2019 until 2021, excluding net proceeds related to closing the Aeroplan transaction. That’s up from the $2b-$3b cumulative free cash flow originally projected from 2018 to 2020. The airline targeted a leverage ratio of 1.2 by the end of 2019, consistent with the earlier goal for a 1.2 ratio by the end of 2020. <br/>
