Air Canada’s fourth-quarter revenue increased about 10.6 percent from a year prior to nearly C$5.2 billion (US$3.9 billion) “as demand remained strong,” the carrier announced Friday. Air Canada also reported record full-year 2023 operating revenue of more than $21.8 billion, an increase of nearly 32 percent year over year.
The fourth-quarter performance was driven by 12 percent higher passenger revenues year over year, higher traffic and a higher yield, while full-year results were due to a “36 percent growth in passenger revenue [from a year prior], strong demand for travel in all markets and a better operating environment,” Air Canada EVP of network planning and revenue management Mark Galardo said on a Friday earnings call.
The carrier leaned into its focus on its international segment, for which in 2023 passenger revenue was up 50 percent year over year, Galardo said, adding that international accounted for 65 percent of the increase in annual passenger revenue.
Air Canada’s North America segment “also performed well,” Galardo said, “with significant increases in passenger revenue, traffic and capacity.” Full-year transborder revenue increased 37 percent year over year to more than $4.1 billion.
Galardo also credited the carrier’s joint venture with United Airlines, which had a “stronger than anticipated result on transborder” with multiple new routes and enhanced services to several cities. Further, 2023 revenue from premium cabins increased 37 percent year over year and “this was noted across all markets for leisure and business customers.”
Air Canada reported fourth-quarter net income of $184 million, up from $168 million in Q4 2022. Full-year income was nearly $2.3 billion compared with a $1.7 billion loss in 2022.
The carrier increased capacity in the fourth quarter by 9 percent year over year, and approximately 20 percent for the full year compared with 2022. Capacity outlook for 2024 is an increase of 6 percent to 8 percent year over year.
