Air Canada reports record full year operating income of $21.8bn                       

Air Canada has recorded a record high operating revenue of $21.8bn for the full year 2023, up 32% from 2023, with the carrier transporting more than 46 million passengers over the course of the year. The record operating revenue (up $5.28bn from 2022) was assisted by an approximately 20% growth in operating capacity, which was in line with Air Canada’s October 2023 guidance. In 2024, Air Canada plans to further increase its available seat miles by another 6-8%. The airline’s operating income for 2023 was $2.28bn with an operating margin of 10.4%, an improvement of $2.47bn. However, operating expenses of $19.56bn also increased by 17%, primarily driven by rises in ‘all line items reflecting higher operated capacity and traffic year over year, including higher salaries, wages and benefits’. Net cash flow from operating activities of $4.32bn increased by $1.95bn. Air Canada reported an adjusted EBITDA for the full year 2023 of $3.98bn with an adjusted EBITDA margin of 18.2%, which improved $2.52bn and was ‘at the high end’ of October’s guidance. Net debt to adjusted EBITDA ratio stood at 1.1 as of December 31 2023, an improvement from 5.1 compared to the end of 2022, due to an the adjusted EBITDA increase and a $2.9bn reduction in net debt. In Q4 2023, the airline’s adjusted EBITDA was nearly $4bn, more than twice that of the full year 2022. Despite the ongoing macroeconomic and structural cost pressures facing the airline industry, CEO of Air Canada Michael Rosseau notes that the carrier “remains adaptable to changing business conditions, and is poised to take advantage of opportunities”.