Image: Air Canada

“Air Canada’s impressive first quarter performance reflects the strength of our brand, the very strong demand environment across all markets and the effective execution of our strategic plan. When compared to the same quarter in 2022, passenger revenues more than doubled and hit a first quarter record of close to $4.1 billion, supported by our diversified network and our strong international franchise. Adjusted EBITDA surged by $554 million to $411 million, and our adjusted CASM fell nearly seven per cent from a year ago,” said Michael Rousseau, President and chief executive officer of Air Canada.

“Our first quarter financial results exceeded both internal and external expectations and we expect demand to persist, supported by strong advance bookings for the remainder of the year.|Air Canada assumes moderate Canadian GDP growth for 2023, that the Canadian dollar will trade, on average, at C$1.34 per U.S. dollar for the full year 2023 and that the price of jet fuel will average C$1.09 per litre for the full year 2023.

“The revised guidance for adjusted EBITDA reflects expected earnings resulting from an improvement in traffic and yield from a stronger-than-anticipated demand environment and lower-than expected fuel price. The revised guidance for adjusted CASM reflects adjustments to various expense items including those resulting from the higher-than-expected traffic. Air Canada’s 2023 capacity guidance remains substantially unchanged.”

Outlook

For the second quarter of 2023, Air Canada plans to increase its ASM capacity by about 22 per cent from the same quarter in 2022.