Air Canada has reported "record" fourth quarter (Q4 2022) passenger revenues of C$4.062bn, twice those of 2021 and "about two per cent higher" than Q4 2019.
The annual operating loss of C$187 million was "significantly better" than an operating loss of over C$3 billion in 2021, the carrier said, but a net loss of C$1.7bn, or $4.75 per diluted share, which included a foreign exchange loss of C$732 million, was less of a rebound compared to a net loss of C$3.6bn in 2021.
The carrier's reported Q4 2022 operating expenses of C$4.7bn were up C$1.47bn on the same period the year before, an increase largely caused by high jet fuel prices.
It gave earnings [EBITDA] of C$389 million for the quarter, a margin of 8.3%, and C$1.457bn for the year, by the end of which it reported "total liquidity of over C$9.8bn".
Q4 2022 ticket sales were 102% of 2019, the carrier stated, with premium cabin revenue up 13% over the time and cargo up 55%.
Air Canada's operating capacity, which it measured by available seat miles (ASMs), increased about 59% on Q4 2021 to about 85% of Q4 2019 and was up two-and-a-half times for the year weighed against 2022.
For the year, the carrier reported a net loss of C$1.7bn, or $4.75 per diluted share, compared to a net loss of C$3.602bn, or C$10.25 per diluted share, in 2021, with the 2022 net loss included a foreign exchange loss of C$732 million. The 2022 adjusted net loss of C$988 million, or $2.76 per diluted share, was a big improvement on an adjusted net loss of C$3.768bn, which was $10.74 per diluted share, reported in 2021.
"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. This was due to solid demand and yield environments across our network, said Michael Rousseau, the airline's president and chief executive.
"We reported positive cash flows from operations in the fourth quarter of C$647 million and positive free cash flow of C$320 million. We exercised diligent cost control. Our adjusted EBITDA of C$389 million was C$367 million better than a year ago," Rousseau added, saying the results validated the carrier's strategy "of diversifying our revenue sources".
"More than 36 million people chose to fly with Air Canada last year. We appreciate and thank them for their loyalty. We intend to do much more to provide them with an elevated level of customer service and continuous value from our airline in 2023 and beyond," the president said.