Air Canada Reports Third Quarter 2023 Net Income of $1.25 Billion or $3.08 per Diluted Share
Air Canada has reported a third quarter net profit of $1.25 billion or $3.08 per diluted share on a year-over-year increase in revenue of 19 percent to $6.34 billion. At September 30, 2023, the carrier had total liquidity of $10.0 billion.
On Monday (October 30, 2023), Air Canada reported their third quarter financial results for the period ending September 30, 2023. The carrier reported a third quarter net income of $1.25 billion or $3.08 per diluted share on a 19 percent year-over-year increase in revenue to $6.34 billion. Air Canada’s Q3 revenue per available seat mile (RASM) increased 8.6 percent compared to the third quarter of 2022 to 22.6 cents, while cost per available seat mile (CASM) decreased versus Q3 2022 top 17.6 cents. The company’s third quarter costs excluding fuel and other items (CASM-ex) or ‘Adjusted CASM’ increased year-over-year by 5.6 percent to 12.2 cents. At September 30, 2023, Air Canada has total liquidity of $10.0 billion.
In Monday’s announcement, Air Canada’s President and Chief Executive Officer, Michael Rousseau, said,
“Air Canada performed strongly in the third quarter, generating solid operating revenues of more than $6.3 billion, a 19 per cent increase over the same period last year. Our focus on growing our international network, building scale at our hubs and leveraging our solid partnerships is delivering strong results. Our operating income reached $1.4 billion, more than double from a year ago, and adjusted EBITDA grew by $773 million to $1.83 billion, representing an adjusted EBITDA margin of nearly 29 per cent. I thank our employees and management team for their hard work in safely transporting 12.6 million customers during the busy and demanding summer season. We managed costs prudently, with operating expenses rising 5 per cent, on a 10 per cent increase in capacity. We have continued to pay down debt in the quarter, lowering our leverage ratio to 1.4 from 5.1 at the end of last year, while also maintaining a healthy level of liquidity, which stood at nearly $10 billion at the quarter’s end.”
“Viewed sequentially, Air Canada's progressive performance to date proves the success of its strategy to grow back the airline and improve operational stability, while mitigating risks. This requires navigating geopolitical uncertainty, inflation and the volatile fuel price environment, meeting increased competition and dealing with supply chain, and the evolving regulatory environment. Yet our demonstrated adaptability, combined with a stable demand environment, give us every confidence for the rest of the year and into 2024 despite the inevitable headwinds to which our global industry is prone. We will continue to manage our business with diligence. We remain confident with our full year adjusted EBITDA guidance and at this point in time, expect to land in the higher range of our full year guidance.”
Air Canada's Third Quarter 2023 Financial Results - Courtesy Air Canada/CNW
Air Canada is Canada’s largest domestic and international airline. The Canadian flag carrier is a founding member of the Star Alliance and holds 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