Air Canada by the numbers

Air Canada has released the following update on the expected impact related to Aveos Fleet Performance Inc.’s (Aveos) filing for creditor protection under the Companies’ Creditors Arrangement Act on its first quarter 2012 results and progress on transitional and long-term arrangements following Aveos’s cessation of operations. In that update, AC notes that Aveos was a separate and independently owned and managed supplier to Air Canada that provided aircraft, engine and component maintenance services to airlines, including Air Canada. As for its first quarter 2012 results — which will be released on May 4, the carrier indicated that those results will include charges totalling $120 million relating to Aveos. The charges are comprised of the following: a non-cash loss on investments of $65 million resulting from the 2010 restructuring of Aveos which will be recorded in non-operating expense on Air Canada’s consolidated statement of operations; and a liability and corresponding loss from discontinued operations of $55 million related to Air Canada’s commitment under an employee separation program provided for in the January 2011 Canada Industrial Relations Board ruling which recognized separate bargaining units for Aveos and Air Canada unionized employees. Air Canada said in its update that first quarter 2012 EBITDAR is expected to range between $170 million and $180 million, which is higher than analysts’ consensus estimates. At March 31, 2012, cash and short-term investments amounted to $2.249 billion, $135 million higher than its cash and short-term investments balance at March 31, 2011. The carrier also noted that all figures reported above with respect to the first quarter of 2012 are preliminary, have not been reviewed by Air Canada’s auditors and are subject to change as Air Canada’s first quarter 2012 financial results are finalized. For more, go to http://www.aircanada.com .