- Joe Breitfeller
Air Canada Reports First Quarter 2023 Net Income of $4.0 Million, Adjusted Net Loss of $188 Million
Air Canada has reported a first quarter net income of $4.0 million, and an adjusted net loss of $188 million or ($ 0.53) per diluted share, on a year-over-year increase in revenue of 90 percent to a record $4.9 billion.
On Friday (May 12, 2023), Air Canada reported their first quarter financial results for the period ending March 31, 2023. The carrier reported a first quarter net income of $4.0 million on a year-over-year increase in revenue of 90 percent to a record $4.9 billion. On an adjusted basis, Air Canada reported a first quarter net loss of $188 million or ($0.53) per diluted share. The airline’s first quarter total revenue per available seat mile (TRASM) increased 23.9 percent year-over-year to 22.3 cents, while cost per available seat mile (CASM) increased 2.5 percent compared to the same period last year to 22.4 cents. Adjusted CASM improved 6.9 percent compared to the first quarter of 2022 to 14.52 cents. At March 31, 2023, the company had total liquidity of over $10.5 billion.
In Friday’s announcement, Air Canada’s President and Chief Executive Officer, Michael Rousseau, said,
“Air Canada's impressive first quarter performance reflects the strength of our brand, the very strong demand environment across all markets and the effective execution of our strategic plan. When compared to the same quarter in 2022, passenger revenues more than doubled and hit a first quarter record of close to $4.1 billion, supported by our diversified network and our strong international franchise. Adjusted EBITDA surged by $554 million to $411 million, and our adjusted CASM fell nearly seven per cent from a year ago.
“Our first quarter financial results exceeded both internal and external expectations and we expect demand to persist, supported by strong advance bookings for the remainder of the year. For this reason, as well as lower-than-expected fuel costs, we increased our 2023 adjusted EBITDA guidance last week. I thank all employees for their continued focus on improving all aspects of our company through effective and positive teamwork, and our customers for their loyalty.
“All areas of the business contributed meaningfully during the quarter. Air Canada Cargo is expanding its network and fleet, Aeroplan is gaining more members and gross billings have increased 50% when compared to the first quarter of 2022, and Air Canada Vacations produced remarkable results. System yields improved approximately 9 per cent compared to the first quarter of 2022. We achieved a strong free cash flow of nearly $1 billion. This will allow us to continue investing in our future, including by further deleveraging our balance
Air Canada is Canada’s largest domestic and international airline. The Canadian flag carrier is a founding member of the Star Alliance and the only international network carrier in North America to receive a Four-Star ranking from Skytrax. Air Canada provides scheduled passenger service to 180 airports in Canada, the United States, and internationally on six continents. Through the carrier’s Aeroplan loyalty program, customers can earn and redeem points on the world’s largest airline partner network of 45 airlines. Air Canada Cargo offers air freight lift and connectivity to hundreds of destinations across six continents with a dedicated fleet of 767-300 Freighters and passenger aircraft belly hold capacity. Additionally, the airline has committed to a net zero emissions goal from all global operations by 2050.
Source: Air Canada/CNW