Air Canada posts Q4 profit, offering new optimism after tough year for airline

MONTREAL –

Air Canada’s comeback from pandemic shutdowns seems to be gaining momentum after the airline posted a revenue in its newest quarter, providing hope the business has turned a nook even because the nation’s largest airline posted a $1.7 billion loss for the 12 months.

The firm reported a $168-million revenue for the three months ending Dec. 31, as passenger and working revenues recovered to report highs.

The interval included the turbulent Christmas journey season that culminated in a continent-wide storm that brought on “four-foot icicles” on some plane, an airline government stated throughout a name with analysts on Friday.

“Weather events were more extreme than usual, even for Canada,” Air Canada’s chief operations officer Craig Landry stated. “It also coincided with some of the highest peak travel dates of the holiday season.”

Extreme chilly in Calgary made de-icing actions unsafe, baggage dealing with methods in Toronto froze, big icicles shaped on plane and bridges in Vancouver, and heavy snowfall affected takeoff and touchdown occasions throughout the nation, he stated.

“As flights take progressive delays due to weather, this can cause our crews to exceed their maximum duty days,” Landry stated. “It can lead to unplanned flight cancellations.”

Despite the difficult winter circumstances, the Montreal-based airline’s fourth-quarter revenue amounted to 41 cents per diluted share, in contrast with a lack of $493 million or $1.38 in the identical interval throughout 2021.

Overall, Air Canada nonetheless posted a $1.7 billion loss for the 12 months amid a rocky restoration from COVID-19 restrictions and a chaotic summer season journey season marked by delays and cancellations as airports, border providers and airways struggled to deal with a surge in passengers.

But its robust fourth quarter helped brighten the outlook for 2023 and has the management of the nation’s largest airline charting a turnaround.

Indeed, Air Canada introduced plans to spice up capability this 12 months.

The firm stated it plans to extend its so-called accessible seat miles — an aviation time period that refers to an airline’s carrying capability and talent to generate revenues — by about 50 per cent within the first quarter of 2023 in contrast with the identical interval final 12 months.

For 2024, Air Canada stated it expects its capability to achieve 2019 ranges — a goal that alerts a whole post-pandemic restoration for the airline.

“The progress is a tribute to the deep resilience we have built into our company for long term stability,” Michael Rousseau, chief government of Air Canada, stated throughout a name with analysts.

“We expect a solid demand environment in 2023,” he stated. “In anticipation, we are building out our global network, continuing our narrow-body fleet renewal, and investing in technology and customer service.”

In its newest quarter, income from Air Canada’s core passenger business was up about two per cent in contrast with the identical interval of 2019 earlier than the pandemic hit.

The airline’s premium cabin income was about 13 per cent increased, supported partially by its loyalty program Aeroplan.

The airline’s holidays floor bundle revenues contributed to development in different revenues of $62 million, about 23 per cent increased than the fourth quarter of 2019, Rousseau stated.

Air Canada Cargo income was up 55 per cent in comparison with the identical quarter pre-pandemic.

Meanwhile, though the airline provided an optimistic outlook for 2023, a slowing financial system may weigh on demand and derail Air Canada’s restoration.

The firm’s adjusted earnings totalled $389 million, a rise from $22 million within the fourth quarter of 2021.

Air Canada’s passenger revenues hit $4.06 billion, doubling from the fourth quarter 2021 and about two per cent increased than the identical interval in 2019.

Operating revenues reached $4.68 billion, 71 per cent increased than the fourth quarter 2021 and about six per cent increased than the identical quarter in 2019.

This report by The Canadian Press was first printed Feb. 17, 2023.