Airline had record operating revenue, advanced
strategic initiatives
MONTREAL, March 26,
2024 /CNW/ - Air Canada today issued its 2023 Annual
Report highlighting the carrier's achievements for the year. In
addition to its strong financial results, including record annual
revenue, the airline made progress on key strategic initiatives.
The report is available in the Investor Relations section of
www.aircanada.com.
"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.
"We continued to renew our fleet with more fuel-efficient and
comfortable aircraft, and we expanded our network and products to
offer more choice and convenience to our customers. We also
advanced our Environmental, Social and Governance programs through
our sustainability, equity and accessibility activities and
supported the communities we serve, including by providing
thousands of employment opportunities.
"Air Canada has a solid
foundation to build upon and a clear vision for the future as a
leader in the global aviation industry, connecting Canada to the world, and as a trusted partner
for all our stakeholders. I thank our customers for their loyalty,
our 39,000 employees for their hard work and dedication to safe
operations and our investors for their support throughout the
year."
Among its key accomplishments, in 2023 Air Canada:
- Safely carried 46 million passengers and earned full year
operating income of $2.3 billion on
record operating revenue of $21.8
billion. Adjusted EBITDA* more than doubled, reaching nearly
$4 billion, and the airline generated
cash from operating activities of approximately $4.3 billion and free cash flow* of nearly
$2.8 billion.
- Reduced its leverage ratio* to 1.1 times adjusted EBITDA from
5.1 times adjusted EBITDA at December 31,
2022, and ended the year with total liquidity of
$10.3 billion.
- Launched 14 new routes to serve 188 direct destinations. In
support of its ongoing fleet renewal and network expansion it
sourced 18 Boeing 787-10 Dreamliner and five Boeing 737 MAX-8
fuel-efficient aircraft for future delivery.
- Hired 8,000 people during the year, bringing the total employee
count to approximately 39,000 and, through $1.6 billion in capital expenditures during the
year, including within Canada,
invested in such things as new aircraft, technology and customer
service improvements.
- Furthered its business diversification, with Aeroplan reaching
eight million members, Air Canada Cargo deploying its seven cargo
freighters to more than 12 destinations, and Air Canada Vacations
materially increasing its revenues.
- Completed 41 initiatives under its Elevating the Customer
Experience service plan and improved key operating metrics, such as
on-time performance and baggage handling. In addition, it
accelerated its three-year accessibility plan to better accommodate
customers with disabilities.
- Worked toward our climate action plan through various
initiatives, including with the addition of modern and efficient
aircraft and ground support equipment (e-GSE vehicles) to the
fleet, sourcing additional SAF and continuing to engage with our
corporate customers through our Leave Less Travel Program.
- Implemented four structural Diversity, Equity and Inclusion
(DEI) pillars: DEI Executive Council, DEI Steering Committee, DEI
Champions Program, and the formalization of employee resource
groups (ERGs).
- Supported, with the Air Canada Foundation, 360 Canadian
charitable organizations dedicated to the health and well-being of
children. The Foundation raised more than $1.7 million, and the Dreams Take Flight program
resumed flying, allowing more than 1,000 children to create
treasured experiences.
* Adjusted EBITDA (earnings before interest, taxes,
depreciation, and amortization), leverage ratio (also referred to
as net debt to trailing 12-month adjusted EBITDA ratio) and free
cash flow are referred to in this news release. Such measures are
non-GAAP financial measures, non-GAAP ratios, or supplementary
financial measures, are not recognized measures for financial
statement presentation under GAAP, do not have standardized
meanings, may not be comparable to similar measures presented by
other entities and should not be considered a substitute for or
superior to GAAP results. Refer to the "Non-GAAP Financial
Measures" section of the news release dated February 16, 2024 or Air Canada's public
disclosure file for descriptions of these measures, and for a
reconciliation of Air Canada non-GAAP measures used in this news
release to the most comparable GAAP financial
measure.
About Air Canada
Air Canada is Canada's largest airline, the country's flag
carrier and a founding member of Star
Alliance, the world's most comprehensive air transportation
network. Air Canada provides
scheduled service directly to more than 180 airports in
Canada, the United States and Internationally on six
continents. It holds a Four-Star ranking from Skytrax. Air
Canada's Aeroplan program is
Canada's premier travel loyalty
program, where members can earn or redeem points on the world's
largest airline partner network of 45 airlines, plus through an
extensive range of merchandise, hotel and car rental partners.
Through Air Canada Vacations, it offers more travel choices than
any other Canadian tour operator to hundreds of destinations
worldwide, with a wide selection of hotels, flights, cruises, day
tours, and car rentals. Its freight division, Air Canada Cargo,
provides air freight lift and connectivity to hundreds of
destinations across six continents using Air Canada's passenger and
freighter aircraft. Air Canada
aims to achieve an ambitious net zero emissions goal from all
global operations by 2050. Air Canada shares are publicly
traded on the TSX in Canada and
the OTCQX in the US.
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SOURCE Air Canada