Air Canada reports record operating revenues for 2023

Air Canada has reported its fourth quarter and full year 2023 financial results.

According to Michael Rousseau, president and CEO of Air Canada, the airline “produced very strong results for the fourth quarter and full year 2023, delivering on its key financial goals and strategic priorities. For the full year, we had record operating revenues of $21.8 billion, up 32 per cent from 2022 as demand for air travel remained strong.”

Rousseau further added that Air Canada posted an annual operating income of $2.3 billion; a $2.5 billion improvement from the previous year. The company’s adjusted EBITDA was nearly $4 billion; more than twice that of full year 2022.

“These results stem from the effective management, hard work and customer centric approach of everyone at Air Canada. I thank the entire team for their dedication as we safely transported more than 46 million passengers in 2023,” said Rousseau. “The focus on operational improvements was evident as, even with the growth in traffic and ongoing supply chain challenges, our key operational metrics and customer satisfaction improved year over year.”

Rousseau noted that the company will continue to expand on its Aeroplan program, which is a key driver of customer loyalty that has doubled its membership to eight million members over the last five years.

Fourth quarter 2023 financial results

The following is an overview of Air Canada’s results of operations and financial position for the fourth quarter 2023 compared to the fourth quarter 2022.

  • Operating revenues of $5.175 billion increased $495 million or 11 per cent on an operated capacity growth of over 9 per cent year over year, close to the guidance provided in Air Canada’s news release dated October 30, 2023.
  • Operating expenses of $5.096 billion increased $388 million or 8 per cent. The increase was due to higher costs in nearly all line items reflecting higher operated capacity and traffic year over year, including higher wages, salaries and benefits. The increase was partially offset by lower aircraft fuel expense on a jet fuel price decline.
  • Operating income of $79 million, with an operating margin of 1.5 per cent, improved $107 million.
  • Adjusted EBITDA of $521 million, with an adjusted EBITDA margin* of 10.1 per cent, improved $132 million.
  • Net income of $184 million and diluted earnings per share of $0.41 compared to a net income of $168 million and diluted earnings per share of $0.41.
  • Adjusted net loss* of $44 million and adjusted loss per diluted share of $0.12 compared to an adjusted net loss of $217 million and adjusted loss per diluted share of $0.61.
  • Adjusted CASM* of 14.25 cents compared to 13.68 cents, an increase of 4.1 per cent driven by higher salaries, wages and benefits expenses, higher maintenance costs and general inflationary pressures on certain line items.
  • Net cash flows from operating activities of $985 million increased $338 million.
  • Free cash flow of $669 million increased $349 million.

To view Air Canada’s full annual report, click here.