Continued Strong EBITDAR Margins
Foreign Exchange Risk is Well Managed
Foreign exchange risk strategy is to cover 70% of net U.S. exposure on a rolling
18-month basis
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Air Canada's financial results are reported in Canadian dollars while a large portion of its
expenses, debt obligations and capital commitments are in foreign currencies, primarily
U.S. dollars
Air Canada's U.S. dollar exposure is partially hedged by U.S. and foreign-denominated
revenues which essentially cover U.S. and foreign-denominated non-fuel operating
expense exposure
In order to manage our exposure to the U.S. dollar, we hold U.S. dollar cash reserves
and enter into currency derivative contracts.
Annual U.S. dollar net exposure shortfall will decrease as a result of decline in U.S.
denominated capital expenditures and increased U.S. dollar revenue
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