Air Canada generated $644 million in operating income with a strong operating margin of 12.1% for the third quarter ending September 30. The results marked the first time since the pandemic began that the airline delivered positive operating income.
Other metrics showed strong improvement as well: operating revenues more than doubled to $5.3 billion, on a capacity growth of 130%; yields improved as well, helping to counter sharply higher fuel costs; and advance ticket sales in the quarter reached 95% of Q3 2019 levels.
"Air Canada's solid third quarter results stem from the ongoing restoration of our extensive network, an improved operational performance, our modern and efficient fleet, as well as leading products and services, and an incredible team of employees," said President and CEO Michael Rousseau.
"Despite the global disruption of air travel, through teamwork and focused efforts, we safely transported nearly 11.5 million customers to their destinations this quarter. We are further encouraged by continuing strong demand, now further stimulated by the easing of COVID-related restrictions.
The summer got off to a rocky start, with frequent delays, cancellations and baggage handling woes. The airline says the worst is behind them.
"Thanks to the hard work and commitment of our employees, after a difficult June and July, we saw significant operational improvement throughout August and September, with the operation today now on par with pre pandemic levels," Rousseau said.
"Still, we know many customers experienced disruptions travelling this summer, and we sincerely regret any inconveniences that have occurred. We would like to thank our customers for their understanding and loyalty and assure them that the lessons of this operationally challenging period are now being applied to build greater resiliency going forward, and to elevate the customer experience overall."
During the quarter, Air Canada marked its 85th anniversary.
"We stand on a robust foundation and, with our most recent financial results, investments and strategic plan, are confident we have a bright future in connecting Canada and the world," said Rousseau.
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