MONTREAL, July 22, 2024 /CNW/ - Air Canada today provided preliminary results for the second quarter of 2024 and updated its 2024 financial and capacity guidance.  Q2 2024 preliminary results Operating revenues of about $5.5 billion, on 6.5% increased operated capacity year-over-year, as compared to about $5.4 billion in Q2 2023 Operating income of $466 million, with an operating margin of 8.4%, as compared to $802 million in Q2 2023 Adjusted EBITDA* of $914 million, as compared to about $1.2 billion in Q2 2023 All 2024 second quarter figures reported in this news release are preliminary estimates. Air Canada's interim unaudited condensed consolidated financial statements for the second quarter of 2024 are not yet complete and results for second quarter 2024 may vary from these preliminary estimates upon completion of closing procedures and finalization of the interim unaudited condensed consolidated financial statements.  2024 outlook Air Canada is now updating its full year 2024 guidance as follows: Metric Prior FY 2024 Guidance Updated FY 2024 Guidance ASM capacity 6 to 8% increase versus 2023 5.5 to 6.5% increase versus 2023 Adjusted CASM* 2.5 to 4.5% increase versus 2023 2.5 to 3.5% increase versus 2023 Adjusted EBITDA* $3.7 to $4.2 billion $3.1 to $3.4 billion *Adjusted CASM, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and adjusted EBITDA margin are referred to in this news release. Such measures are non-GAAP financial measures, or non-GAAP ratios, are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results. Refer to the "Non-GAAP Financial Measures" section of this news release for descriptions of these measures, and for a reconciliation of Air Canada non-GAAP measures used in this news release to the most comparable GAAP financial measure. The updated 2024 adjusted EBITDA guidance range is largely driven by the lower yield environment, lower-than-expected load factors for the second half of the year and competitive pressures in international markets. It also reflects our assumptions including those relating to the price of jet fuel and a weakened Canadian dollar against the US dollar. The updated 2024 capacity guidance range accounts for sustained supply chain pressures, evolving market conditions and ongoing geopolitical issues. The updated 2024 adjusted CASM range includes the impact of the revised ASM capacity guidance range. Air Canada is effectively managing costs through productivity, cost reductions and other cost discipline initiatives. Air Canada continues to see a healthy demand environment. The second quarter operating revenues would represent a record for a second quarter, with load factors remaining above historical averages. Air Canada will provide additional details when it releases its second quarter 2024 results on Wednesday, August 7, 2024. Major assumptions Air Canada made assumptions in providing its guidance — including moderate Canadian GDP growth for 2024. As part of its assumptions, Air Canada now assumes that the Canadian dollar will trade, on average, at C$1.36 per U.S. dollar for the full year 2024 and continues to assume that the price of jet fuel will average C$1.03 per litre for the full year 2024. The preliminary estimates and outlook provided in this news release constitute forward-looking statements within the meaning of applicable securities laws, are based on a number of assumptions and are subject to a number of risks and uncertainties, including those outlined in this release. Please see section below entitled "Caution Regarding Forward-Looking Information". Second quarter 2024 results Air Canada will be releasing its second quarter 2024 results on Wednesday, August 7, 2024. Following this,