Air Canada reported a record-breaking C$22.3 billion ($15.7 billion) in revenue for 2024, a 2% increase year-on-year. However, rising costs led to a sharp decline in profitability. The airline’s full-year net income fell by C$556 million ($392.4 million), reaching C$1.7 billion ($1.1 billion).
The fourth quarter saw operating losses of C$254 million ($179.2 million) due to an 11% rise in expenses, including higher labor and maintenance costs. A significant C$490 million ($345.8 million) charge related to a new pilot agreement also weighed on earnings. CEO Michael Rousseau acknowledged the challenges but emphasised the airline’s resilience.
“We safely transported about 47 million passengers in 2024 and strengthened operations, improving on-time performance by eight points over last year,” Rousseau said.
Despite the financial setback, Air Canada remains optimistic. The airline projects adjusted EBITDA of C$3.4 billion to C$3.8 billion ($2.3 billion to $2.6 billion) in 2025, with a 3% to 5% increase in capacity. The company maintains long-term growth plans, forecasting over C$30 billion ($21.1 billion) in revenue by 2030.
However, geopolitical tensions could pose challenges. With U.S.-Canada relations strained, a Leger survey found that 48% of Canadians are less likely to visit the U.S. in 2025. Air Canada, which schedules 24.2% of its flights to the U.S., may need to adjust its strategy accordingly.
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