Leading Canadian airline Air Canada has committed to a new cost cutting initiative that will see the firm looking to save up to $250mn over the course of the next two years.
“We remain committed to meeting the key financial targets set during our September 2017 Investor Day,” said Air Canada CEO, Calin Rovinescu.
“Beyond this, as we continue to capitalize on the momentum of our strategy and to further entrench cost discipline into our DNA, we have undertaken a new Cost Transformation Program intended to secure an additional $250mn in savings by the end of 2019.”
This comes as the company continues to look for ways to transform the business, having record earnings of $2.921bn for 2017, up $153mn from the $2.768bn recorded in 2016.
“Our strong 2017 results underscore the effectiveness of our transformation strategy, as well as the success of our global expansion and the power of our comprehensive network,” said Rovinescu.
“We profitably expanded our global network with 30 new routes launched, and carried a record 48mn customers, while maintaining our focus on cost discipline and continuing to improve margins.”
Passenger revenue rose 10% to $1.45bn for the year, contributing significantly to the firm’s long term goal of becoming financially sound and sustainable.
Air Canada also revealed that it would be investing substantially into its mainline narrow-body replacement program, in the aim of constructing a fleet that is both newer and cheaper to cost, enhancing the overall efficiency and experience of the airline.
“Along with new aircraft, we will keep investing in products and services, including our new loyalty program, technology to enrich the travel experience, and enhanced airport services and amenities,” Rovinescu concluded.