In 2020, global tourism recorded the worst year in history, international arrivals decreasing by 74%. Destinations around the world have faced one billion fewer international arrivals in 2020 than in the previous year, due to the unprecedented drop in demand, but also due to travel restrictions imposed globally.
Because of it coronavirus pandemic, and 2021 will be a difficult year for global tourism. The beginning of this year came with many restrictions imposed by European countries and around the world.
Air Canada revenues have fallen by 70% in 2020.
Air Canada released the 2020 figures. Thus, total revenues in 2020 decreased by 70% compared to 2019, to $ 5.833 billion. Air Canada reported negative EBITDA in 2020 of $ 2.043 billion compared to 2019 EBITDA of $ 3.636 billion.
The airline also reported an operating loss of $ 3.776 billion in 2020, compared to operating income of $ 1.650 billion in 2019. Unrestricted liquidity amounted to $ 8.013 billion as of December 31, 2020.
Numerous health and safety policies have been implemented for passengers and employees.
Air Canada has updated health and safety policies and procedures for passengers and airport employees, as well as for pilots and crews on board aircraft. Both Air Canada passengers and employees are required to wear face masks, to comply with the required distance and hygiene rules.
To emphasize its commitment to customer and employee safety, Air Canada has introduced Air Canada CleanCare +. This program is designed to reduce the risk of COVID-19 exposure through measures such as improved aircraft care, mandatory customer temperature checks, and mandatory mask wearing.
In January 2021, Air Canada received Diamond certification from the Airline Passenger Experience Association (APEX) Health Safety powered by SimpliFlying.
Air Canada introduced many touchless processes along the way, including: TouchFree Bag Check for flights departing from Canadian airports, the ability to order food directly at Maple Leaf Lounges from smartphones and tablets, touchless access to Air Canada Café and providing digital newspapers and magazines.
Air Canada works with Shoppers Drug Mart to offer customers the opportunity to perform a COVID-19 PCR test before departure to meet international travel requirements. The test is now available for travel from Ontario, Alberta and British Columbia.
Air Canada is the first Canadian airline to offer its customers the safety and convenience of a new boarding method that uses facial biometrics.
Air Canada's 2020 results.
Air Canada posted a net loss of $ 4.647 billion or $ 16.47 per share compared to net income of $ 1.476 billion or gains of $ 5.44 per share in 2019.
In 2020, net cash used in operating activities of $ 2.353 billion deteriorated by $ 8.065 billion as of 2019, with lower operating results and lower working capital cash due to lower ticket sales, both reflecting the impact of the pandemic. COVID-19.
The first quarter of 2020 was unaffected, with the company recording revenues of $ 1.612 billion in conjunction with the acquisition of Aeroplan by Air Canada.
In 2020, net cash flows used in investment activities of $ 733 million reflected a decrease of $ 2.062 billion compared to 2019, mainly due to a lower level of capital expenditures from one year to another, sales receipts and leasing of nine Boeing 737 MAX 8 aircraft, but also movements between cash and short-term and long-term investments.
The impact of a stronger Canadian dollar on December 31, 2020 compared to December 31, 2019, decreased the currency-denominated debt (mainly US dollars) by $ 346 million. In 2020, net cash consumption was $ 4.672 billion, or about $ 13 million a day.
Air Canada plans in 2021.
Air Canada plans to reduce capacity in the first quarter of 2021 by approximately 85% compared to the same quarter in 2019 (a reduction of approximately 83% compared to the first quarter of 2020).
The lower projected capacity is determined primarily by more severe travel restrictions recently announced, including the requirement for a negative COVID-19 PCR test prior to arrival in Canada, ssuspension of flights to Mexico and the Caribbean starting with February 1, 2021, the announcement of the mandatory testing upon arrival at the four designated airports, but also the imposition of supervised quarantine periods at the hotels mandated by the government.
Air Canada projects net cash expenditures of $ 1.35 billion to $ 1.53 billion ($ 15 million to $ 17 million per day) in the first quarter of 2021. This net projection includes $ 4 million / day in leasing and debt services expenses and 2 million dollars / day in net capital expenditures.