Air Canada cargo revenue up 16% on higher demand
Pacific revenue increased 22% to $76 million and Atlantic revenue was up 6% at $89 million.;
Air Canada reported a 16 percent increase in cargo revenue at $250 million for the first quarter of 2025 compared to $215 million in the same period last year as shippers increased activity to get ahead of tariff deadlines and U.S. changes to the duty-free exemption rules on low-value goods.
Pacific revenue increased 22 percent to $76 million and Atlantic revenue was up six percent at $89 million, says an official release.
Canada, US transborder cargo revenue also increased, and 'other' cargo revenue was up 37 percent at $44 million, the release added.
"At the end of the first quarter of 2025, Air Canada operated six Boeing 767 freighter aircraft compared to eight at the end of the first quarter of 2024."
Total revenue declined marginally to $5.2 billion while net loss for the period increased to $102 million.
"Our first quarter 2025 results show Air Canada is effectively managing through a turbulent period," says Michael Rousseau, President and Chief Executive Officer, Air Canada. "Total operating revenues of nearly $5.2 billion were stable year-over-year on similar capacity. We recorded adjusted EBITDA of $387 million. Winter is always a challenging test, yet in the quarter we made progress in on-time performance, baggage delivery and customer satisfaction. Most importantly, we carried our nearly 10.8 million passengers safely and I thank all employees for their hard work taking care of our customers."
Outlook
Air Canada is now expecting a lower EBITDA of $3.2-3.6 billion for the full year of 2025 from the earlier estimate of $3.4-3.8 billion "to account for the recent trends in the commercial environment and fuel price expectations."