- Air Canada has reported its Q4 2023 and full-year financial results, reporting record operating revenues of $21.8 billion for the year, up 32 per cent from 2022
- Full operating income for the year totaled $2.27 billion with an operating margin of 10.4 per cent, an improved $2.466 billion
- For Q1 2024, Air Canada plans to increase its available seat miles capacity by about 10 per cent from Q1 2023
- Shares of Air Canada are down 5.09 per cent to C$18.28 as of 10:14 am ET
Air Canada (TSX:AC) has revealed its Q4 2023 and full year financial results, highlighting record revenue of C$21.8 billion for the year, representing a 32 per cent increase from the previous year.
In a news release, the airline company stated that in addition to its record revenue, full-year operating income totaled $2.27 billion while its cash from operating activities totaled $4.3 billion and free cash flow came in at $2.75 billion.
“These results stem from the effective management, hard work and customer-centric approach of everyone at Air Canada,” Michael Rousseau, CEO of Air Canada, said in a news release. “The focus on operational improvements was evident as, even with the growth in traffic and ongoing supply chain challenges, our key operational metrics and customer satisfaction improved year over year.”
Other highlights from its Q4 2023 and full year financials include:
- Operating revenues of $5.175 billion for Q4 2023 increased $495 million or 11 per cent on an operated capacity growth of over 9 per cent year over year
- Operating expenses of $5.096 billion for Q4 increased $388 million or 8 per cent
- Operating revenues of $21.8 billion for the full year 2023 increased $5.277 billion or 32 per cent on approximately a 20 per cent growth in operated capacity
- Operating expenses of $19.554 billion for the full year 2023 increased $2.811 billion or 17 per cent
- Operating income of $2.279 billion for the full year 2023, with an operating margin of 10.4 per cent, improved by $2.466 billion
Looking into the first quarter of the the year, Air Canada plans to increase its available seat miles capacity by about 10 per cent compared to the same quarter in 2023.
Against the backdrop of Air Canada’s Q4 2023 and full-year financial results are allegations that its online chatbot customer service platform advised a grieving customer to purchase full-price flight tickets.
This week Air Canada was ordered by the Civil Resolution Tribunal (CRT) to pay customer Jake Moffatt $812 in compensation for representing the difference between its bereavement rates and the $1,630.36 Moffatt paid for full-price return tickets.
Screenshots were provided by Moffatt to CRT that stated: “If you need to travel immediately or have already travelled and would like to submit your ticket for a reduced bereavement rate, kindly do so within 90 days of the date your ticket was issued by completing our Ticket Refund Application form.”
Air Canada argued, however, that it is not responsible for information provided by one of its “agents, servants or representatives – including a chatbot.”
Air Canada is a provider of scheduled passenger services in the Canadian market, the Canada-U.S. transborder market and the international market to and from Canada.
Shares of Air Canada are down 5.09 per cent to C$18.28 as of 10:14 am ET.
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