Air Canada announced a quarterly profit compared to a loss the previous year, as the Canadian airline benefited from strong demand for international travel.
She recorded a net profit of 1.25 billion Canadian dollars (850 million euros), or 3.08 Canadian dollars per share, for the third quarter of 2023, compared to a net loss of 508 million Canadian dollarsor 1.42 Canadian dollars per share, over the same period in 2022. Its revenues totaled 6.34 billion Canadian dollars during the quarter, an increase from the 5.32 billion recorded for the same period in 2022. Also, Air Canada expects its profit for all of 2023 to be at the upper range of its previous forecasts
Canada’s largest airline carried 12.6 million passengers during the summer quarter, increasing traffic driven by its international network. It is now considering the possibility of redeploying its capacity particularly towards Asia-Pacific in the coming months, by stimulating travel to Japan and Korea.
“We managed costs prudently, with operating expenses increasing by 5% on the back of a 10% increase in capacity. We continued to repay our debt during the quarter, reducing our financial leverage ratio to 1.4, compared to 5.1 at the end of 2022, while maintaining a good level of liquidity (…) Analyzed quarter by quarter, Air Canada’s improved results to date demonstrate the effectiveness of its strategy to turn around the airline and improve operational stability while reducing risk. To do this, we must deal with geopolitical uncertainty, inflation and fuel price volatility, increasingly fierce competition and constraints linked to the supply chain and the evolution of the regulatory framework. However, our proven ability to adapt, combined with stable demand, gives us confidence for the remainder of the year and for 2024, despite the inevitable headwinds blowing across our sector globally.“, declared Michael Rousseau, President and CEO of Air Canada.
In addition to operating costs such as rising fuel, Air Canada is facing pressure from rising labor costs. Last month, Air Canada pilots staged a protest at the address to demand better pay and benefits, as negotiations over a new contract covering 4,500 of the airline’s pilots continue.