Air Canada Reports First Quarter Loss of $17 Million in 2023

Air Canada Reports First Quarter Loss of $17 Million in 2023

Air Canada Reports Strong Recovery with Doubled Passenger Revenue and Increased Capacity. Air Canada recently announced impressive post-pandemic rebound figures, revealing that it has doubled its passenger revenue compared to the previous year and experienced a significant capacity improvement of over 53%.

The airline’s operating revenues have reached CA $4.88 billion ($3.57 billion), demonstrating a remarkable growth of more than 90% compared to the first quarter of 2022. Additionally, this represents a 10% improvement when compared to the pre-pandemic period in 2019. Michael Rousseau, President and Chief Executive Officer of Air Canada, expressed his satisfaction with the results:

Our first quarter financial results surpassed both internal and external expectations, and we anticipate sustained demand, supported by robust advance bookings throughout the remainder of the year. In light of this, along with lower-than-anticipated fuel costs, we raised our 2023 adjusted EBITDA guidance last week. I would like to extend my gratitude to all employees for their ongoing dedication to enhancing all aspects of our company through effective teamwork, as well as to our loyal customers.”

Cargo, Vacations, and Aeroplan Contribute to Air Canada’s Strong First Quarter Performance

Air Canada has highlighted the significant contributions of Air Canada Cargo, Air Canada Vacations, and Aeroplan to its strong first-quarter results. The carrier reported a notable 9% improvement in overall system yields and a substantial increase in overall cash flow, amounting to nearly CA $987 million ($723 million).

Operating losses sat at CA $17 million ($12.4 million), a vast improvement compared to Q1, 2022, where the airline wrote off CA $550 million ($406 million).

Air Canada’s Financial Results Show Positive Performance Amid Assumptions of Moderate GDP Growth and Stable Exchange Rates

Air Canada’s financial results statement revealed that the airline’s executives had proactively anticipated moderate GDP growth in Canada and an exchange rate of approximately CA $1.34 to US $1. This, coupled with robust passenger demand and a decline in the cost of jet fuel, has significantly contributed to Air Canada’s favorable performance. President and CEO Rousseau highlighted:

“Air Canada’s remarkable performance in the first quarter demonstrates the strength of our brand, the robust demand environment across all markets, and the successful execution of our strategic plan. Compared to the same quarter in 2022, passenger revenues more than doubled, reaching a record of nearly $4.1 billion in the first quarter, supported by our diverse network and strong international presence. Adjusted EBITDA surged by $554 million, reaching $411 million, and our adjusted CASM* declined by nearly seven percent compared to the previous year.”

Air Canada Expands Network in 2023 with New Direct Service to Cairo

In a move to broaden its network, Air Canada has recently relaunched a direct route connecting Montréal-Pierre Elliott Trudeau International Airport (YUL) in Canada with Cairo International Airport (CAI) in Egypt. According to a report from Simple Flying, the inaugural flight took place on May 2nd, marking the beginning of a seasonal service that will operate until October 27th. The route will be serviced by a Boeing 787 Dreamliner aircraft, allowing passengers to enjoy a convenient and comfortable travel experience between the two destinations.

Air Canada to Launch Direct Service from Toronto to Martinique, Becoming the Second Canadian City on the Route

Toronto is set to become the second Canadian city to offer direct Air Canada service to Martinique, starting from December 16th, just in time for the holiday season. The flights will be operated by the Airbus A220-300 aircraft, providing passengers with a convenient and seamless travel experience. This new service will complement the year-round direct flights from Montreal to Martinique, which are currently served by the Boeing 737 MAX 8 aircraft. With the addition of Toronto, more travelers will have the opportunity to enjoy a direct connection to the beautiful Caribbean island of Martinique.

Air Canada and Virgin Australia announced an enhanced partnership last week, which allows Virgin Australia to expand its global network by 500 destinations through its partner airlines. As part of this cooperation, travelers can earn and redeem Velocity points on Air Canada services, thereby improving their overall travel experience.

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