An Air Canada aircraft is de-iced at Vancouver International Airport in Richmond, B.C., on Wednesday, Dec. 21, 2022. THE CANADIAN PRESS/Darryl Dyck
MONTREAL – Air Canada’s comeback from pandemic shutdowns appears to be gaining momentum after the airline posted a profit in its latest quarter as passenger and operating revenues recovered to record highs.
The company reported a $168-million profit for the three months ending Dec. 31, a period that included the turbulent Christmas travel season and a continent-wide storm that caused “four-foot icicles” on some aircraft, an Air Canada executive shared during a call with analysts on Friday.
The Montreal-based airline said its fourth-quarter profit amounted to 41 cents per diluted share, compared with a loss of $493 million or $1.38 in the same period during 2021.
Overall, Air Canada still posted a $1.7 billion loss for the year amid a rocky recovery from COVID-19 restrictions and the collapse of travel.
But its strong fourth quarter helped brighten the outlook for 2023 and chart a turnaround for Canada’s largest airline.
Indeed, Air Canada announced plans to boost capacity this year.
The company said it plans to increase its so-called available seat miles – an aviation term that refers to an airline’s carrying capacity and ability to generate revenues – by about 50 per cent in the first quarter of 2023 compared with the same period last year.
For 2024, Air Canada said it expects its capacity to reach 2019 levels, a target that puts the airline on a path to a full post-pandemic rebound.
“The progress is a tribute to the deep resilience we have built into our company for long term stability,” Michael Rousseau, chief executive of Air Canada, said during a call with analysts.
“We expect a solid demand environment in 2023,” he said. “In anticipation, we are building out our global network, continuing our narrow-body fleet renewal, and investing in technology and customer service.”
The company’s adjusted earnings totalled $389 million, an increase from $22 million in the fourth quarter of 2021.
Air Canada’s passenger revenues hit $4.062 billion, doubling from the fourth quarter 2021 and about two per cent higher than the same period in 2019.
Operating revenues reached $4.680 billion, 71 per cent higher than the fourth quarter 2021 and about six per cent higher than the same quarter in 2019.
This report by The Canadian Press was first published Feb. 17, 2023.
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