Air Canada is setting bold financial targets for the next four years, including a nearly 38% growth in operating revenue over the next four years.
In conjunction with its 2024 Investor Day being held 17DEC, Canada’s largest airline reaffirmed its 2024 full year guidance, announced its 2025 full year guidance, its 2028 key financial targets and 2030 aspirations.
Perhaps the most eye-catching stat is that Air Canada is setting a target of roughly $30 billion in operating revenues for 2028. Last year’s operating revenue was $21.83 billion, so an increase to $30 billion would be a sizeable jump of 37.4%.
MarketScreener.com reports Air Canada hopes to ride “a wave of strong demand for leisure travel across domestic and international routes.
“Airlines worldwide are optimistic about the future of air travel, driven by a post-pandemic surge as travelers shift their priorities from goods to experiences,” the website said.
"We are proud and excited to share Air Canada's ambitions,” said Michael Rousseau, President and CEO of Air Canada. “We are announcing a long-term plan grounded on a proven commercial strategy.
“The story of Air Canada's performance is one of demonstrated ability to execute and deliver on commitments. Our strategy, which builds on and leverages the unique strengths developed over the last decade, is to rise even higher with consistent margin expansion and structural cash generation while maintaining a strong balance sheet and a responsible risk profile.
“Our plan includes expanding the network, improving the customer experience, taking care of our employees, enhancing financial performance and continuously investing in the business to generate long-term value for investors, while being mindful of the interests of our stakeholders. We believe we are very well positioned to execute our long-term plans," Rousseau said.
Air Canada officials said in a press release that they hope to increase their ASM as well. Available Seat Miles were 99 billion in 2023. AC said it hopes to increase that by five per cent for this year and between three and five per cent in 2025.
Air Canada said it made several assumptions in providing its 2024 and 2025 guidance—including moderate Canadian GDP growth for 2024 and 2025. Air Canada also assumes that the Canadian dollar will trade on average, at C$1.36 and C$1.40 for the full year 2024 and 2025, respectively, and that the price of jet fuel will average C$1.00 and C$0.95 per litre for the full year 2024 and 2025, respectively.
More details were expected as Investor Day continued in Montreal.
