Air Canada Reports Strong Q4-FY 2023 Financial Results
Air Canada has reported strong financial results for the fourth quarter and full year of 2023, meeting its financial goals and strategic priorities.
Air Canada has reported strong financial results for the fourth quarter and full year of 2023, meeting its financial goals and strategic priorities.
DALLAS — Air Canada (AC) has reported strong financial results for the fourth quarter and full year of 2023, meeting its financial goals and strategic priorities.
Canada's largest airline and the country's flag carrier recorded operating revenues of C$21.8 billion in 2023, a 32% increase from the previous year. The annual operating income was C$2.3 billion, a C$2.5 billion improvement from the previous year. Adjusted EBITDA was nearly C$4 billion, more than twice that of 2022. AC transported over 46 million passengers in 2023, and despite the growth in traffic and supply chain challenges, key operational metrics and customer satisfaction improved year over year.
For the fourth quarter of 2023, AC reported operating revenues of C$5.175 billion, an increase of 11% compared to the same quarter in 2022. Operating expenses increased by 8%, primarily due to higher costs in various areas, including wages, salaries, and benefits. However, the increase was partially offset by lower aircraft fuel expenses. The operating income for the quarter was C$79 million, with an operating margin of 1.5%. Adjusted EBITDA was C$521 million, with an adjusted EBITDA margin of 10.1%. Net income for the quarter was C$184 million, and diluted earnings per share were $0.41.
For the full year 2023, AC recorded operating revenues of C$21.833 billion, a 32% increase from the previous year. Operating expenses increased by 17%, primarily due to higher costs in various areas, including salaries, wages, and benefits. The operating income for the year was C$2.279 billion, with an operating margin of 10.4%. Adjusted EBITDA was C$3.982 billion, with an adjusted EBITDA margin of 18.2%. Net income for the year was C$2.276 billion, and diluted earnings per share were $5.96.
The carrier plans to increase its ASM (Available Seat Miles) capacity by about 10% in the first quarter of 2024 compared to the same quarter in 2023. For 2024, the company expects a 6 to 8% increase in ASM capacity compared to 2023. The adjusted CASM (Cost per Available Seat Mile) is projected to increase by 2.5 to 4.5% compared to 2023. The adjusted EBITDA for 2024 is expected to be between C$3.7 billion and C$4.2 billion.
Featured image: Air Canada Airbus A220-300 (BCS3) C-GWUQ | ATL/KATL. Photo: Rohan Ramalingam/Airways
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