Air Canada cargo 2024 revenue up 7% on higher volumes
For the fourth quarter of 2024, revenue was up 20 percent at $293 million.
Air Canada reported a seven percent increase in cargo revenue at $991 million for 2024 as against $924 million in 2023.
"This was the result of higher volumes of chargeable kilos and yields for belly cargo in the Pacific and freight in the Americas. The increase was partially offset by lower cargo revenues in the Atlantic primarily due to lower yields," says an official release.
Atlantic revenue was down 13 percent at $375 million as against $432 million in 2023. While Canada revenue increased 13 percent to $106 million, U.S. transborder revenue was up 27 percent at $58 million.
For the fourth quarter of 2024, revenue was up 20 percent at $293 million, driven largely by
the Pacific revenue boost (up 42 percent) at $92 million.
At the end of 2024, Air Canada operated six Boeing 767 freighter aircraft compared to seven at the end of 2023.
2024 net income drops
Air Canada reported a net income of $1.7 billion for 2024 as against $2.3 billion in 2023, a decline of 24 percent. Operating revenue was up marginally (two percent) at $22.2 billion.
"Air Canada achieved record annual revenues in 2024 of $22.3 billion on a five percent increase in capacity over 2023. We executed our plan, making adjustments where necessary, achieving nearly $3.6 billion in annual adjusted EBITDA and free cash flow of $1.3 billion. We also bought back for cancellation over 20 million shares in 2024 and over 15 million more in early 2025, completing the normal course issuer bid program we announced in November. We safely transported about 47 million passengers during the year, and I thank all Air Canada employees for their dedication to serving our customers with glowing-hearted hospitality," says Michael Rousseau, President and Chief Executive Officer, Air Canada.
"We are well positioned with a solid year behind us to leverage our competitive advantages, including our iconic brand, premium products and global network to continue delivering on our plans. Our team has consistently proven its discipline, and we will continue to navigate uncertainty and external pressures with prudence and decisiveness. The demand environment remains favourable. We remain agile and responsive in our dynamic aviation industry and are prepared to adapt promptly to any changes or challenges that may arise."
For the year 2025, Air Canada is expecting an adjusted EBITDA of $3.4-3.8 billion and free cash flow of break even +/- $200 million.
The company also reiterated its 2028 targets of $30 billion operating revenues and adjusted EBITDA margin of more than or equal to 17 percent.
(All the figures mentioned here are Canadian dollars)
