Air Canada, the renowned Canadian flag carrier, has had a stellar year in 2023, achieving remarkable financial success and strategic growth. According to its 2023 annual report, the airline’s performance was exceptional with operating revenues reaching $21.8 billion. This feat was accompanied by a slew of accomplishments, including fleet expansion, route additions, and a significant increase in its workforce, demonstrating its commitment to excellence and growth.
“Air Canada delivered very strong results in 2023. We met key financial objectives and advanced or exceeded most of our strategic and operational goals for the year, demonstrating our ability to perform consistently,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.
Financial performance ($21.8 billion operating revenue):
In 2023, Air Canada achieved record operating revenue of $21.8 billion, with full-year operating income reaching $2.3 billion. Operating revenue is the money a company makes from its primary business activities, like selling products or services, according to Investopedia.
Furthermore, the airline’s adjusted EBITDA more than doubled, reaching nearly $4 billion. Air Canada also generated cash from operating activities of approximately $4.3 billion and a free cash flow of nearly $2.8 billion.
Operational excellence (46 million passengers):
According to the report, Air Canada safely carried 46 million passengers and launched 14 new routes to serve 188 direct destinations, enhancing connectivity and customer choice. In addition, the airline scaled its three-year accessibility plan to better accommodate customers with disabilities.
Fleet expansion (23 aircraft):
Air Canada continued its fleet expansion strategy, sourcing 23 aircraft; comprising 18 Boeing 787-10 Dreamliner and five Boeing 737 MAX-8 fuel-efficient aircraft for future delivery, ensuring a modern and environmentally friendly fleet.
In addition, the Canadian airline expanded its business diversification efforts. Aeroplan, its loyalty program, reached eight million members. Air Canada Cargo deployed its seven cargo freighters to more than 12 destinations, and Air Canada Vacations saw a substantial increase in its revenues.
Employee growth:
In 2023, the airline hired 8,000 people during the year, bringing the total employee count to approximately 39,000, reflecting its commitment to supporting employment opportunities.
Sustainability and inclusivity
Air Canada’s success in 2023 extended beyond financial gains to strategic advancements. CEO Rousseau highlighted the significance of an expanded network and enhanced product offerings in attracting more customers. He also emphasized the company’s commitment to sustainability, equity, and accessibility.
“We continued to renew our fleet with more fuel-efficient and comfortable aircraft, expanded our network and products to provide customers with more choice and convenience,” he stated. “Additionally, we advanced our Environmental, Social, and Governance programs through sustainability, equity, and accessibility initiatives, and supported the communities we serve by creating thousands of employment opportunities.”
Also, the report revealed that Air Canada, in partnership with the Air Canada Foundation, supported 360 Canadian charitable organizations dedicated to children’s health and well-being. The Foundation raised over $1.7 million, enabling the Dreams Take Flight program to resume flying and create cherished experiences for over 1,000 children.
Future aspiration
As Air Canada progresses into 2024, it continues to build on its successes from the previous year. With a strong financial foundation, a growing fleet, and a commitment to sustainability, the airline is well-positioned to maintain its leadership in the industry. As Canada’s connection to the world, Air Canada remains dedicated to serving its customers, employees, and investors, making it not just an airline but a vital partner in progress and growth.
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