Air Canada Reports Q4-FY 2024 Financial Results

‍DALLAS — Air Canada (AC) has released its financial results for the fourth quarter and full year of 2024. The airline reported record revenues despite increased operational costs and a notable decline in net income.

Fourth Quarter 2024 Highlights

Operating revenue reached a record C$5.404 billion, a 4% increase year-over-year.
Operating expenses rose 11% to C$5.658 billion, mainly due to a C$490 million one-time charge related to pension plan amendments from the airline’s new contract with the Air Line Pilots Association (ALPA).
The operating loss was C$254 million, compared to an operating income of C$79 million in Q4 2023.
Adjusted EBITDA grew 33% to C$696 million, with an improved 12.9% adjusted EBITDA margin.
Adjusted pre-tax income increased by C$182 million to C$135 million.
A net loss of C$644 million (or C$1.81 per share) was recorded, in contrast to a net income of C$184 million in Q4 2023.
Free cash flow turned negative at -C$495 million, compared to C$669 million in Q4 2023.

Full Year 2024 Performance

Record C$22.255 billion in annual revenue, a 2% increase from 2023.
Operating expenses rose 7% to C$20.992 billion, driven by capacity expansion and increased labor, maintenance, and IT costs.
Operating income declined 44.6% to C$1.263 billion.
Adjusted EBITDA totaled C$3.586 billion, a C$396 million decrease year-over-year.
Net income fell to C$1.720 billion from C$2.276 billion in 2023.
Free cash flow stood at C$1.294 billion, down C$1.462 billion year-over-year.
The airline ended the year with a leverage ratio of 1.4, compared to 1.1 at the end of 2023.

Strategic Developments & Outlook

Air Canada repurchased over 20 million shares in 2024 and an additional 15 million in early 2025, completing its normal course issuer bid announced in November 2024. The airline transported approximately 47 million passengers during the year and reported an 8-point improvement in on-time performance compared to 2023.

CEO Michael Rousseau emphasized the company’s resilience and strategic execution in a challenging environment, stating:

“2024 allowed us to demonstrate the wide-ranging strengths and adaptability of Air Canada. We adapted to market conditions, secured a new pilot contract with minimal disruption, and continued investing in fleet, technology, and customer experience. As we move into 2025, we remain well-positioned to leverage our brand and network advantages.”

2025 Guidance & 2028 Targets

Air Canada maintains its 2025 guidance with expectations of:

Adjusted EBITDA between C$3.4 billion and C$3.8 billion.
Capacity (ASM) growth of 3% to 5%.
Adjusted CASM between 14.25¢ and 14.50¢.
Free cash flow of break-even +/- C$200 million.

Air Canada aims for C$30 billion in revenue, an adjusted EBITDA margin of at least 17%, and a free cash flow margin of approximately 5% by 2028.

Challenges & Market Conditions

The airline remains cautious of fuel price fluctuations, economic conditions, and geopolitical uncertainties. Additionally, Rousseau reiterated that Air Canada will stay agile in response to evolving demand and external pressures, ensuring continued operational efficiency and customer service investment.

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