Air Canada has published its third quarter results that have seen a considerable profit reported alongside further improvements.
Breaking Down The Third Quarter
Air Canada says it brought in an operating profit of USD 1 billion for the third quarter.
As a result of the solid performance and 10% rise in capacity year-on-year, the operating profit was more than double the results it saw for the same period one year prior.
Additionally, operating revenue sat at CAD 6.3 billion. This financial area of the business saw a 19% jump for the same quarter one year prior.
The airline’s load factor also increased in 2023s third quarter by three percentage points, moving upwards to 90%.
Air Canada says expenses were incurred related to the freighter operations. For its freight sector, it operates six Boeing 767 freighters. This is a substantial increase in comparison to the two units that were in service as of September 30, 2022.
The flag carrier further notes that the expenses incurred on its freight operations are not something all companies face, as very few have a freighter operation.
Comments From Executives
Viewed sequentially, Air Canada’s progressive performance to date proves the success of its strategy to grow back the airline and improve operational stability, while mitigating risks. This requires navigating geopolitical uncertainty, inflation and the volatile fuel price environment, meeting increased competition and dealing with supply chain, and the evolving regulatory environment. Yet our demonstrated adaptability, combined with a stable demand environment, give us every confidence for the rest of the year and into 2024 despite the inevitable headwinds to which our global industry is prone. We will continue to manage our business with diligence. We remain confident with our full year adjusted EBITDA guidance and at this point in time, expect to land in the higher range of our full year guidance.Michael Rousseau, President and Chief Executive Officer at Air Canada.
Air Canada’s Future Outlook
Air Canada says for the fourth quarter of 2023, it will see an increase in its ASM capacity of around 10% from 2022’s performance.
The carrier says looking into 2024, it doesn’t plan on updating any of its targets at this time. However, it’ll continue to assess and review performance as time progresses.