Air Canada announced its financial outcomes for both the fourth quarter and the entirety of 2023 today. The airline witnessed exceptional performance throughout the year, surpassing its financial targets and strategic objectives. In 2023, Air Canada reported unprecedented operating revenues of $21.8 billion, marking a 32% increase from the previous year, bolstered by sustained strong demand for air travel. The annual operating income reached $2.3 billion, reflecting a substantial $2.5 billion enhancement over the prior year. Additionally, the airline’s adjusted EBITDA nearly doubled from 2022, reaching close to $4 billion. Michael Rousseau, President and CEO of Air Canada, attributed these achievements to the airline’s effective management, the hard work of its team, and a focus on customer service, highlighting the transportation of over 46 million passengers safely in 2023. Despite challenges such as supply chain disruptions, the airline improved its operational metrics and customer satisfaction.

In 2023, Air Canada took significant steps to ensure consistent performance and commitment to customer service excellence, operational reliability, and profitable growth. The airline strengthened its financial position by reducing debt and managing unit costs within its adjusted CASM guidance, despite facing macroeconomic and structural cost pressures. Aeroplan, the airline’s loyalty program, doubled its membership to eight million over the past five years, underlining its importance in driving customer loyalty.

 “Our airline remains adaptable to changing business conditions, and is poised to take advantage of opportunities, giving us every confidence for the year ahead.  As we look into the future, we aim to grow, deliver on our financial objectives and create long-term value for all stakeholders.”

For the fourth quarter of 2023, Air Canada reported operating revenues of $5.175 billion, an 11% increase from the previous year, closely aligning with its capacity growth. Operating expenses rose by 8% to $5.096 billion, reflecting higher costs across most categories due to increased capacity and traffic. The operating income for the quarter was $79 million, a significant improvement from the previous period, with adjusted EBITDA reaching $521 million, indicating an upward trend.

Looking at the full year, Air Canada’s operating revenues soared by 32% to $21.833 billion, with operating expenses up by 17% to $19.554 billion. The operating income improved dramatically to $2.279 billion, and adjusted EBITDA reached $3.982 billion, highlighting a strong financial position. The net income stood at $2.276 billion, a stark contrast to the previous year’s net loss.

For the upcoming first quarter of 2024, Air Canada plans to increase its ASM capacity by approximately 10% from the same quarter in 2023. The airline has also set its full-year 2024 guidance, anticipating a 6 to 8% increase in ASM capacity and an adjusted EBITDA of $3.7 to $4.2 billion, reflecting its positive outlook and ongoing commitment to growth and operational efficiency.

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