Super strong financial results. New, comfortable planes flying to new destinations. And more choice for customers and advisors.
Air Canada issued its 2023 Annual Report on 26MAR, 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.
A senior member of the Air Canada executive team singled out the work done by travel advisors in the past year.
"During and after the pandemic, our agency partners repeatedly proved their value, especially in maintaining our customers' loyalty," said Lisa Pierce, Air Canada's VP of Global Sales and Air Canada Vacations. "They remain essential given the heightened competition we all face, and we are committed to this partnership, as demonstrated through NDC, which is all about equipping agencies to better serve our shared customers.
"On behalf of Air Canada, I thank the agency community for their support in 2023, and we are looking for ways to deepen this relationship in the future for our mutual benefit."
Strong Results in 2023
"Air Canada delivered very strong results in 2023, " said Michael Rousseau, President and Chief Executive Officer of Air Canada. “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.”
“In 2023, we expanded our reach by introducing new routes and new destinations,” he said. “We are the largest provider of scheduled passenger services in the Canadian market and in the Canada-U.S. transborder and the international markets to and from Canada.
“Consistent with our goal of reaching new frontiers, we gave our customers more travel options through our arrangements with United Airlines and Emirates, offering our customers more destinations to the United States and the Middle East,” he said.
Rousseau also noted that Air Canada “invested in novel technologies and product enhancements to provide our customers high-quality comfort and enhanced service. This includes being the first Canadian airline to pilot a new facial recognition technology and expanding our premium airport lounge network to 29 lounges worldwide.”
As well, Aeroplan, Air Canada’s award-winning loyalty program, has more than eight million active members, a figure that has doubled since 2019. Aeroplan produced new, innovative partnerships and services in 2023, such as with Bell and Parkland.
"We continued to renew our fleet with more fuel-efficient and comfortable aircraft,” Rosseau said. “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,” Rousseau said.
"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,” Rousseau added. “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 its 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 their corporate customers through its 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.
