Page 21 - STAT November 2022 for Magzter

sion and Analysis of Results of Operations around August this year as was evinced
and Financial Condition – had answers.
in Air Canada’s report, “Flight delays and
Photo: Toronto Pearson International Airport until early 2022, Air Canada and the rest of and there was a progressive increase in
“During the period from March 2020
cancellations started to decrease in August
operational stability experienced in the
the global airline industry faced signifi-
second half of the third quarter of 2022,
cantly lower traffic than in 2019, and a
corresponding decline in revenue and
however there can be no assurance that
further significant disruptions will not
cash flows, as a result of the Covid-19 pan-
demic and the travel restrictions imposed
re-occur. The impact of the Covid-19
in many countries around the world
pandemic continues to evolve, amplifying
including in Canada.”
The report, however, stated that condi-
risks, any of which could materially and ad-
tions had looked up since then. “Condi- or adding new risks, including economic
versely affect Air Canada’s business, results
Furthermore, the analysis went on to tions have improved significantly, and from operations, and financial condition.”
state that capacity was below 2021 levels. travel restrictions have been lifted in Air Canada’s report was in accordance
“Capacity was 2% below 2021 (+1.2% for in- many countries, including in Canada, but with IATA’s findings about Northern Ameri-
ternational operations). Both global capac- the wide-ranging impact of the Covid-19 can routes in August. This is what IATA’s Air
ity and international capacity decreased pandemic and certain other factors have Cargo Market Analysis for August 2022 had
slightly in April compared to March. Asia impeded, particularly during the summer to say, “North America remains on track to
experienced the largest falls in capacity.” of 2022, Air Canada’s and the global airline the rebound of international Cargo Tonne
To understand how the Transatlantic trails industry’s restart efforts and also the ability Kilometres (CTKs), with smaller negative
fared, therefore, we decided to analyse this of some of its participants, on which Air YoY growth in two consecutive months.
through a capacity-demand perspective. Canada’s operations are dependent, to In August, the YoY gap narrowed down to
Though carriers experienced a capacity support the surge in traffic.” 4.5% from the 6.5% level in July. The latest
drop worldwide, we decided to pick out This is what Air Canada’s report had to say route area data confirm the rebound in air
and separate the routes between Northern about what factors the carrier is still wary cargo demand in some of the largest cargo
America and the rest of the world. of, as it cited flight delays and the leftover markets, including within Asia, Asia-North
We decided to test ripple effects of the pandemic as poten- America, North America-Europe, and Mid-
this theory on tial threats. “Over the period from June to dle East-Europe.”
the third-quarter August, this led to a meaningful increase in
revenue results flight delays and cancellations, and other
being announced operational disruptions and challenges.”
by carriers the The scenario only started looking up
world over, particu-
larly with reference to
routes between North
America and Europe.
As to why this was
happening, Air Cana-
da’s recently released
– Third Quarter 2022
Management’s Discus-

Photo: Air Canada