Air Canada reported an 18 percent increase in cargo revenue at C$253 million for the third quarter of 2024 compared to C$215 million in Q32023.
“This was primarily due to higher yields and volumes of chargeable kilos of cargo in passenger aircraft in the Pacific market,” says an official release. (Pacific revenues refer to flights that cross the Pacific Ocean with origins and destinations principally in Asia and Australia.)
“To a lesser extent, higher freighter revenues in the Americas also contributed to the increase. This was partially offset by lower belly cargo revenues and freighter revenues in the Atlantic.”
In the first nine months of 2024, cargo revenues increased three percent year over year to C$698 million, the release added. “This was due to higher volumes in the Pacific, aligned with capacity growth in this market, and higher freighter revenues in the Americas.”
Third quarter operating revenue of $6.1 billion was down four percent and adjusted net income dropped 24 percent to C$969 million.
Total operating revenue for nine months of 2024 was marginally higher at C$16.8 billion with adjusted net income down to C$1.2 billion from C$1.7 billion in the same period last year.
“Air Canada reported solid results for the third quarter on key metrics with operating revenues of $6.1 billion and operating income of $1 billion,” says Michael Rousseau, President and Chief Executive, Air Canada. “Adjusted EBITDA of $1.5 billion and our adjusted earnings per share of $2.57 were both ahead of market expectations. We delivered on our ongoing operational improvement programme with quarterly on-time performance rising eight percentage points over the same period in 2023.
“Summer is our peak season and this year our pilot contract negotiations added complexity. We proactively offered options and flexibility to customers, and I am proud that we concluded a mutually beneficial agreement without significant disruption to customers and with a contained revenue impact.
“The demand environment remains favourable. We have adjusted our full year guidance and underlying assumptions to account for the evolution of the fuel price environment and for certain contract-related adjustments. We are delivering on our commitments and are confident in our future. We are now announcing a new share buyback program, addressing some of the dilution experienced from financing decisions necessary during the pandemic, and returning value to shareholders. This additional step, after paying down our debt and funding our growth, is consistent with our capital allocation roadmap and our strategic plan, which we will detail at our Investor Day on December 17, 2024.”
2024 outlookAir Canada has increased its 2024 guidance to an adjusted EBITDA of C$3.5 billion from the earlier estimate of C$3.1-3.4 billion.
