Air Canada Reports 2023 Financial Results

Daniel Fowkes
17 Feb 2024
· Airlines 
Air Canada has reported its fourth quarter and 2023 full-year financial results, with operating expenses rising but an operating profit.

Air Canada has published results for the fourth quarter of 2023 alongside full-year financial results.

The financial results offer further insight into how the airline performed the entire calendar year and whether the fourth quarter generally showed continued improvement.

A Solid Fourth Quarter

In the fourth quarter, the airline said it saw operating revenues of 5.175 billion, increasing 11% year over year. This was also achieved thanks to an increase in overall capacity growth.

Operating income improved by 107 million to 79 million, thus meaning the airline saw positive results rather than seeing its total income bring in losses.

Air Canada reported operating expenses that increased by 8% towards 5.096 billion amid higher costs to operate company-wide. The airline highlighted the increasing wage bill and associated benefits while also trying to limit fuel expenses.

During the year’s final quarter, load factors rose to 83.5%, while only a 0.7 percentage point rise did highlight the continuously improving nature of the company and the demand for flying during the busy final quarter.

2023 Financial Results

For the full-year financial results, Air Canada says it saw operating revenues at 21.833 billion, representing a substantial increase of 32%. This percentage increase also aligns with a 20% growth in operated capacity.

Operating expenses increased 17% to a reported 19.554 billion. Similarly to what was recorded for the fourth quarter, Air Canada says year-round wage bills and associated benefits did increase, which thus reflected the high expenses.

Generally, operating income stood at 2.279 billion with an operating margin of 10.4%. Meanwhile, the airline concluded the year with a fleet of 361 aircraft, including a robust and growing freight operation that included 7 767 Freighters.

The freight operation saw four units join the fleet in the 2023 calendar year, growing to seven units, up from the previous three in service as of December 31, 2022.

As a result of its freighter operation, the Group says it’ll incur costs that a large portion of other companies may not experience. As a result, this should always be factored into its results.

Emerging Competition In Canada

While Air Canada remains the flag carrier and the largest airline in the country, across the last 5-10 years, it has faced more emerging competition from other companies.

Despite offering a robust network and still having a solid customer base, the airline must remain watchful over the developments of these airlines to ensure it can maintain market share.

Ultimately, Air Canada doesn’t just have its mainline to worry about. The airline must also ensure its regional and freight operations are up to standard.

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