2022 marked an essential year for recovery in the aviation industry for many airlines, including Air Canada.
The airline announced that revenues continued to grow for the fourth quarter. However, it still recorded an operating loss for the same quarter. While a loss, they believe that as 2023 progresses, they’ll return to a more stable position.
The airline reported a US $21 million loss for the fourth quarter of 2022. While a loss, it’s still a significant improvement over the fourth quarter in 2021, where they lost over US $500 million.
Air Canada is an airline that’s significantly benefited from the expansion of its freight division. Airlines that either had a freight subsidiary or launched one during the pandemic were able to see still some revenues, even when passenger numbers dwindled. Although, analysts have said that companies should remain hesitant to expand their cargo sector too quickly based on current trends.
Air Canada Cargo reported fourth-quarter revenues 55% higher than before the pandemic. They’ve been aided by the return of 767s that operated passenger services and have since been converted and signing deals for pure-born 767 freighters.
However, the current climate presents challenges even while results continue to improve, like many other airlines. For example, executives at Air Canada say rising costs thanks to inflationary pressures are more noticeable than ever paired with labour shortages globally.
Operating revenues stood at US $3.46 billion. Again, this was above initial market predictions.
2023 will be a year of importance for the Canadian airline as they look to navigate market difficulties, continue its recovery and expand its network.