Air Canada said that it has adjusted its schedule through to April 30 to cover 98 per cent of its planned flying following Transport Canada's closure of Canadian airspace to Boeing 737 MAX aircraft operations. Air Canada intends to remove 737 MAX flying from its schedule until at least July 1, 2019.
In compliance with the safety notice, Air Canada has grounded its 24 737 MAX aircraft and Boeing has advised that deliveries of its 737 MAX are currently suspended. Air Canada was expecting six new aircraft in March and April.
Air Canada said it is now updating its May schedule to further optimize its fleet and re-accommodate customers. Because the timeline for the return to service of the 737 MAX is unknown, for planning purposes and to provide customers certainty for booking and travel, Air Canada intends to remove 737 MAX flying from its schedule until at least July 1, 2019.
On Friday, Air Canada announced that, following Transport Canada's safety notice closing Canadian airspace to Boeing 737 MAX aircraft until further notice, the Federal Aviation Administration's temporary grounding order and Boeing's decision to suspend MAX deliveries to airline customers, it suspended all financial guidance it provided in respect of the first quarter and full year 2019.
Air Canada also said it suspended all financial guidance it provided on February 15, 2019 and February 28, 2019 in respect of the 2019 financial year. The financial guidance provided for the years 2020 and 2021 with respect to annual EBITDA margin (earnings before interest, taxes, depreciation, amortization and impairment, as a percentage of operating revenue) and annual ROIC (return on invested capital) as well as the cumulative free cash flow over the 2019-2021 period remains in place.
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