Air Canada says that it is prepared for any setback derived from the tariffs of President Donald Trumpwith your currency coverage program as a key part of your strategy.
The largest airline in Canada declares its benefits in Canadian dollars, but a large part of its expenses including fuel, debt obligations and capital commitments are called US dollars and other currencies. In 2024, his net exposure to the US dollar was from some US $ 7.1 billion.
A possible commercial war between Canada and the US has weakened the Loonie. Since Trump was chosen in November, it has fallen more than 2% against the green ticket, reaching an intradic minimum of C $ 1,4793 (US $ 1,03751) February 3. The Canadian dollar closed Thursday to C $ 1,4193 (US $ 0.99543).
The airline covers around 70% Of their treasury needs in US dollars at 18 months, compared to 60% of last year, thus reducing its exposure at the moment. The company expects the Canadian dollar to cite to an average of C $ 1.40 this year. The airline has derived liquidation derivatives in 2025 and 2026 to buy at the expiration US $ 6,900 million to a weighted average of C $ 1.35Said Financial Director John Di Bert in the call of the company’s fourth quarter on Friday.
Executives said it was “still premature” Talk about the possible repercussions of tariffs.
Air Canada registered an adjusted benefit by action of C $ 25 centsabove C $ 23 cents planned by analysts in a Bloomberg survey. Exploitation income reached the record figure of C $ 5.4 billion (US $ 3.8 billion)also above the expected. The actions rose to 6.6% at the beginning of the sessionbefore losing ground.
The company did not modify its forecasts by 2025, Waiting for an increase of between 3% and 5% of its miles available, A measure of the available capacity of the airline to generate income. Your sets adjusted before intereststaxes, depreciation and amortization could reach C $ 3.8 billionin front of the C $ 3.6 billion last year, he said.
The threats of Trump They are taking some Canadians to avoid traveling to the United States, another risk for Air Canada. “Demand remains stable, and we see positive reservation trends and performance signs”Said Di Bert. “We are proactively looking for the capacity to leisure destinations in the United States and we believe we have enough opportunities in other parts of the network to redistribute that capacity.”
