Air Canada Raises Earnings Outlook With Strong Demand, Lower Fuel Costs

by Bruce Parkinson
Last updated: 7:41 AM ET, Fri May 5, 2023

Air Canada is seeing clear skies ahead in 2023. The carrier raised its earnings outlook Thursday, saying it expects better results due to soaring demand and lower-than-expected fuel prices.

The airline now says adjusted earnings before interest, taxes, depreciation and amortization in 2023 are expected to reach between $3.5 billion and $4 billion, up from the guidance of between $2.5 billion and $3 billion released February 17.

Cost per available seat mile is expected to be between 0.5% and 2.5% below 2022 levels.

Assumptions include moderate Canadian GDP growth for 2023, as well as the Canadian dollar trading on average at $1.34 per U.S. dollar, and a $1.09-per-litre average jet fuel price.

Canada's largest airline posted a $1.7-billion loss in fiscal 2022, but achieved a profit in the final quarter as the industry roared back from its pandemic lows. , and announced plans to boost capacity in 2023.

Air Canada will release results for its first quarter of 2023 on May 12.

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