Air Canada (TSX:AC.B) shares plunged more than 8% after the airline unveiled ambitious growth targets at its 2024 Investor Day.
The company is targeting a 36% increase in operating revenue between this year and 2028. It forecast operating revenue of C$30 billion with an adjusted core profit margin of 17% or higher for 2028.
Air Canada (TSX:AC.B) is set to report operating revenue of C$22 billion with a core profit of about 16% for this year.
The airline also unveiled its 2025 guidance, with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) expected to be in the range of C$3.4 billion to C$3.8 billion. At the midpoint, this is in line with Street estimates of C$3.63 billion.
Further, Air Canada also reiterated its full-year 2024 guidance of approximately C$3.5 billion in adjusted EBITDA.
Michael Rousseau, Air Canada CEO, expressed confidence in the airline’s ability to execute its long-term plans.
“Our plan includes expanding the network, improving the customer experience, taking care of our employees, enhancing financial performance and continuously investing in the business to generate long-term value for investors, while being mindful of the interests of our stakeholders,” he said.
Air Canada shares traded hands just shy of C$23 late morning on Tuesday, having gained 24% in the year-to-date.