Air Canada 2023 cargo revenue down 27%

Air Canada reported a 27 percent decline in cargo revenue at C$924 million for 2023 compared to C$1.3 billion in 2022.

The decline was due to softness in volume and yield in all markets and to the return of temporarily converted passenger aircraft to passenger operations through the end of the second quarter of 2022, says the management discussion note after the announcement of the results. "Increased freighter operations to Central and South America and to Europe partially offset the year-over-year decline."

Atlantic and Pacific revenue declined to C$432 million (2022: C$556 million) and C$222 million (2002: C$409 million), respectively.

For Q42023, cargo revenue was down 15 percent to C$244 million from C$288 million in Q42022.

Air Canada Cargo began operating freighter services in 2022 and continued deployments in 2023 to over a dozen destinations including Toronto, Halifax, St. John's, Miami, Atlanta, Dallas, Quito, Lima, San Juan, Mexico City, Guadalajara, Bogotá, Madrid, Frankfurt, Basel and Liege. "Air Canada also enhanced its interline co-operation with Emirates SkyCargo, which allows customers to book interline cargo shipments through the Emirates SkyCargo flights, including between the Americas and Southeast Asia and India, through key European hubs.

At the end of 2023, Air Canada Cargo operated a fleet of seven Boeing 767 freighters compared to three 767 freighters in operation at the end of 2022."

2023 operating revenue up 32%
Air Canada reported full year operating revenue of C$21.833 billion, an increase of 32 percent, and full year operating income of C$2.279 billion. The net income for the year was C$1.7 billion as against a loss of C$988 million in 2022.

“Air Canada produced very strong results for the fourth quarter and full year 2023, delivering on its key financial goals and strategic priorities," says Michael Rousseau, President and Chief Executive Officer, Air Canada. "For the full year, we had record operating revenues of $21.8 billion, up 32% from 2022 as demand for air travel remained strong. Annual operating

income was $2.3 billion; a $2.5 billion improvement from the previous year. Our 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. 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."

2024 outlook
Air Canada is expecting an EBITDA of C$3.7-4.2 billion for 2024.