Air Canada’s fourth-quarter revenue increased about 10.6% over 2022 to $3.9 billion “as demand remained strong,” according to an announcement. The airline also reported record full-year 2023 operating revenue of more than $21.8 billion, an increase of nearly 32% year over year.

The fourth-quarter performance was driven by 12% higher passenger revenue year over year, higher traffic and a higher yield, while full-year results were due to a 36% percent growth in passenger revenue over the previous year, strong demand for travel in all markets and a better operating environment, according to Mark Galardo, executive vice president of network planning and revenue management, speaking on an earnings call. 

Passenger revenue for international flights was up 50% year over year, Galardo said, adding that that segment accounted for 65% of the increase in annual passenger revenue.

North American routes also performed well, Galardo said, with significant increases in passenger revenue, traffic and capacity. Galardo also said that Air Canada’s joint venture with United Airlines had a “stronger than anticipated result on transborder,” with multiple new routes and enhanced services to several cities. 

In addition, he said, 2023 revenue from premium cabins increased 37% year over year, with strong demand across all markets for leisure and business customers.

Air Canada’s fourth-quarter net income was $184 million, up from $168 million in the same period in 2022. Full-year income was nearly $2.3 billion, compared with a $1.7 billion loss in 2022. 

The carrier increased capacity in the fourth quarter by 9% year over year, and approximately 20% for the full year compared with 2022. The capacity outlook for 2024 is for an increase of 6% to 8% year over year.

Image: Courtesy of Air Canada