Air Canada has reported a fourth quarter net income of $168 million or $0.41 per diluted share on a 71 percent year-over-year increase in revenue to $4.68 billion, and an adjusted net loss of $217 million or ($0.61) per share (includes foreign exchange gain of $316 million).
On Friday (February 17, 2023), Air Canada reported their financial results for the fourth quarter and full year ending December 31, 2022. The carrier reported a fourth quarter net income of $168 million or $0.41 per diluted share on a year-over-year increase in revenue of 71 percent to $4.68 billion. Adjusted for a $316 million foreign exchange gain, Air Canada reported a fourth quarter net loss of $217 million or ($0.61) per diluted share. For the full year 2022, Air Canada reported a net loss of $1.7 billion or ($4.75) per diluted share on a 2.5+ times year-over-year increase in revenue to $16.56 billion. The FY22 net loss includes a foreign exchange loss of $732 million, resulting in an adjusted full year net loss of $988 million or ($2.76) per diluted share. At December 31, 2022, Air Canada had total liquidity of over $9.8 billion.
In Friday’s financial announcement, Air Canada’s President and Chief Executive Officer, Michael Rousseau, said,
“We are pleased with our fourth quarter and full year 2022 financial results. We reported record fourth quarter passenger and operating revenues, surpassing our results from a year ago and those of the fourth quarter of 2019. This was due to solid demand and yield environments across our network. This progress was also a result of the dedication and hard work of our employees who safely transported more than two million customers during a holiday period challenged by severe winter weather across North America, and to our entire team who successfully executed on our strategy. I warmly thank them.
“Our performance is attributable to the deep resilience we have built into our company for long-term stability. We reported positive cash flows from operations in the fourth quarter of $647 million and positive free cash flow of $320 million. We exercised diligent cost control. Our adjusted EBITDA of $389 million was $367 million better than a year ago. For the full year, we reported adjusted EBITDA of $1.457 billion and an adjusted EBITDA margin of 8.8 per cent, meeting our full-year 2022 guidance. We ended the year with total liquidity of more than $9.8 billion.
“These results also validate our strategy of diversifying our revenue sources. In our core passenger business, revenue was about two per cent higher than in the fourth quarter of 2019. Revenue from our premium cabins was about 13 per cent higher, supported in part by Aeroplan. The loyalty program's active membership is at an all-time high and continues to grow, and Air Canada Cargo revenue was up 55 per cent compared to the same quarter pre-pandemic. Similarly, Air Canada Vacations ground package revenues contributed to the growth in other revenues of $62 million, or 23 per cent higher than the fourth quarter of 2019.
“We are very encouraged with the positive outlook ahead. Our quarterly ticket sales were 102 per cent of the fourth quarter of 2019, on a lower level of capacity, and we expect a solid demand environment in 2023. In anticipation, we are building out our global network, continuing our narrow-body fleet renewal, and investing in technology and customer service. More than 36 million people chose to fly with Air Canada last year. We appreciate and thank them for their loyalty. We intend to do much more to provide them with an elevated level of customer service and continuous value from our airline in 2023 and beyond.”
At December 31, 2022, Air Canada had total long-term debt and lease liabilities of 15.04 billion, cash, cash equivalents and investments of $8.81 billion and net debt of 7.5 billion.
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 51 airports in Canada, 51 in the U.S. and 88 internationally. 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