Air Canada has reported its Q4 and full-year 2023 financial results, with highlights including record operating revenues of $21.8 billion and annual operating income of $2.3 billion – a $2.5 billion improvement from 2022.
"Air Canada produced very strong results for the fourth quarter and full year 2023, delivering on its key financial goals and strategic priorities,” said President and CEO Michael Rousseau.
“We strengthened our balance sheet, reduced our debt and, despite the continuing macroeconomic and structural cost pressures on our industry, our unit costs were contained within our adjusted CASM guidance,” Rousseau added.
The airline sees more good news for 2024. It now expects its 2024 core profit to be in the range of $3.7 billion to $4.2 billion, compared with a target of $3.5 billion to $4.0 billion set last February.
Air Canada president and CEO Michael Rousseau (Photo Credit: Air Canada Media License)
"Our airline remains adaptable to changing business conditions, and is poised to take advantage of opportunities, giving us every confidence for the year ahead. Additionally, we will continue to expand Aeroplan, a key driver of customer loyalty that has doubled its membership to eight million members over the last five years,” Rousseau said.
For the full year, operating revenues of $21.833 billion increased $5.277 billion or 32%, on approximately a 20% growth in operated capacity. For the first quarter of 2024, Air Canada plans to increase its ASM capacity by about 10% from the same quarter in 2023.
One group that was watching AC’s financial results closely is the airline’s pilots, who are pressing for significant pay increases and “quality-of-life” improvements in contract talks.
Represented by the Air Line Pilots Association (ALPA), close to 5,000 AC pilots are looking to narrow a wage gap with their counterparts south of the border, who won record contracts last year, partly thanks to pilot shortages and soaring travel demand.
A private independent mediator is working with the two parties, and a union representative indicates that progress is being made.
"We found that using this professional mediator in this private mediation agreement is starting to get the ball rolling," said Charlene Hudy, who heads the local union representing Air Canada pilots.
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