On 17FEB, Air Canada reported its fourth quarter and full-year 2022 results - which seem to indicate the airline is nearly out of the woods of pandemic financial challenges.
Air Canada still reported operating losses. For the full year, the airline experienced $187 million in losses. $28 million of those losses happened in Q4 - but, as it noted in its statement, that was “significantly better than an operating loss of $503 million in the fourth quarter of 2021.”
But the revenue story is positive by any standards, surpassing not just pandemic performance, but topping that of the final quarter of 2019 before the pandemic struck.
- Record Q4 passenger revenues of $4.062 billion are not only double that of Q4 2021, but even exceed pre-pandemic’s 2019 Q4 by 2 per cent;
- Record Q4 operating revenues of $4.680 billion, are not only 71 per cent higher than Q4 2021, but also 6 per cent higher than the same quarter in 2019.
"We are pleased with our fourth quarter and full year 2022 financial results. We reported record fourth quarter passenger and operating revenues, surpassing our results from a year ago and those of the fourth quarter of 2019,” said Michael Rousseau, President and Chief Executive Officer of Air Canada, in the company’s release.
“This was due to solid demand and yield environments across our network. This progress was also a result of the dedication and hard work of our employees who safely transported more than two million customers during a holiday period challenged by severe winter weather across North America, and to our entire team who successfully executed on our strategy. I warmly thank them," he added.
Rousseau listed factors that Air Canada attributes to its solid fourth-quarter results:
- “deep resilience we have built into our company for long-term stability,” alongside “diligent cost control,” and
- “diversifying our revenue sources,” including:
- premium cabins “supported in part by Aeroplan,”
- Air Canada Cargo revenue, which was up 55 per cent compared to the same quarter pre-pandemic, and also
- “Air Canada Vacations ground package revenues contributed to the growth in other revenues of $62 million, or 23 per cent higher than the fourth quarter of 2019," Rousseau noted, in the first time ACV has been singled out in quarterly results.
“Air Canada Vacations has an incredible team of professionals and I am beyond proud of the excellent work that has culminated in such positive financial results," Nino Montagnese, Vice President, Air Canada Vacations, told Open Jaw about the shout out.
“We are very encouraged”
Air Canada anticipates that 2023 will see even better results, with “solid demand.”
"Our quarterly ticket sales were 102 per cent of the fourth quarter of 2019, on a lower level of capacity,” Rousseau revealed.
In anticipation of meeting that growth in demand, he said the airline is “building out our global network, continuing our narrow-body fleet renewal, and investing in technology and customer service.”
Rousseau thanked loyal pax and said the alrline intends “to do much more to provide them with an elevated level of customer service and continuous value from our airline in 2023 and beyond."
For more information, read Air Canada’s full Q4 and Full-Year 2022 Report statement here.
