LONDON – Canada’s national flag carrier has posted its quarter three financial results for 2022. Reporting a positive $644 million in operating income, and a strong operating margin of 12.1 percent, this was the first quarter since the onset of the pandemic where Air Canada has delivered such numbers.
A solid third quarter
Chief Operating Officer Michael Rousseau said: “Air Canada’s solid third quarter results stem from the ongoing restoration of our extensive network, an improved operational performance, our modern and efficient fleet, as well as leading products and services, and an incredible team of employees.”
When comparing this years results against that of a year ago, their operating capacity that is measured by ‘Available Seat Miles’ has more than doubled. Capacity being at 79% of what it was in the same quarter in 2019. Passenger revenues are close to being at the same place as Q3 in 2019, with the $4.818 billion in revenue representing approximately 94% of the revenues that were made pre pandemic.
Air Canada Cargo has been quoted as ‘consistently contributing to our results’ and Aeroplan, Air Canada’s loyalty programme that earns members rewards and benefits when flying with the carrier, is performing extremely well, with new memberships being at an all time high.
“Despite the global disruption of air travel, through teamwork and focused efforts, we safely transported nearly 11.5 million customers to their destinations this quarter. We are further encouraged by continuing strong demand, now further stimulated by the easing of COVID-related restrictions. Advance ticket sales in the quarter were at 95 per cent of third quarter 2019 levels.
In the third quarter, our adjusted unit cost or adjusted CASM* improved by 38 per cent to 11.6 cents compared to the same period last year, and we will continue to carefully control costs. We ended the quarter with just over $10.2 billion in total liquidity,” continued Rousseau.
Looking towards Q4 2022, Air Canada hopes to have its Available Seat Miles figure at 73 percent of the 2019 result, and forecasts to end the year at 85 percent of its 2019 fourth quarter number. It’s forward looking projections assume that jet fuel will average out at a cost of $1.33 Canadian dollars per litre for the year.
A difficult period
CEO Rousseau thanked employees for their hard work throughout what has been a difficult period, and referenced the fact that there has been good operational improvements from the company during August and September.
“Thanks to the hard work and commitment of our employees, after a difficult June and July, we saw significant operational improvement throughout August and September, with the operation today now on par with pre pandemic levels. Still, we know many customers experienced disruptions travelling this summer, and we sincerely regret any inconveniences that have occurred.”
“We would like to thank our customers for their understanding and loyalty and assure them that the lessons of this operationally challenging period are now being applied to build greater resiliency going forward, and to elevate the customer experience overall. Air Canada marked its 85th anniversary this quarter.”
“We stand on a robust foundation and, with our most recent financial results, investments and strategic plan, are confident we have a bright future in connecting Canada and the world” Rousseau concluded.
Air Canada expansion
AviationSource recently reported on Air Canada’s 2023 expansion plans to resume strategic routes to Japan, and increasing frequencies to key international destinations such as Brussels, Toulouse and Copenhagen. An increase like this in their route network will be important to how their 2023 financial figures turn out.