Air Canada reported its first positive quarterly operating margin at 12.1% since the start of the pandemic. The airline closed the Q3 of 2022 at an operating revenue of $5.322 bn, more than double of Q3 of 2021. The airline had total cash liquidity of $10.2bn at the end of September 30, 2022.
Michael Rousseau, President and Chief Executive Officer of Air Canada, said: “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.”
Air Canada’s operating capacity, measured by Available Seat Miles (ASMs), more than doubled from the third quarter of 2021. Capacity in the third quarter was 79% of the third quarter of 2019. The airline reported passenger revenues of $4.818bn an increase of three times from the Q3 of 2021 and 94% from Q3 of 2021. Air Canada closed the third quarter with an operating expense of $4.678 bn showing an increase of $2.211 bn from the third quarter of 2021.
The airline reported a net loss of $508 million compared to a net loss of $640 million in the third quarter of 2021 and an Operating income of $644 million compared to an operating loss of $364 million in the third quarter of 2021.
Rousseau further added: “We generated $644 million in operating income with a strong operating margin of 12.1%. This was the first quarter since the pandemic began in which we delivered positive operating income. In addition, we achieved significant improvements in other metrics from a year ago. Operating revenues more than doubled to $5.3 billion, on capacity growth of 130%, and EBITDA increased to over a billion, with a margin of 19.9%. Yields also improved, helping offset higher fuel prices. Air Canada Cargo is consistently contributing to our results and Aeroplan is continuing to perform extremely well with travel return. Our transformed loyalty program's gross billings from points sold, purchase volume on co-brand cards, and new members are all at record highs.”
Despite the global disruptions, the airline managed to transport over 11.5 million passengers in Q3 of 2022. For the Q4 of 2022, Air Canada plans to increase its ASM capacity by about 60% from the same quarter in 2021 or approximately 85% of the Q4 of 2019 ASM capacity. The airline also expects to have increased its full-year 2022 ASM capacity by about 148% from 2021 ASM levels.