Air Canada ( (ACDVF) ) has released its Q4 earnings. Here is a breakdown of the information Air Canada presented to its investors.
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Air Canada is a leading Canadian airline company, operating in the aviation industry, known for its extensive domestic and international flight network. The company recently reported its financial results for the fourth quarter and full year of 2024, highlighting record annual revenues of $22.255 billion, a modest increase of 2% compared to the previous year. Despite achieving record revenues, Air Canada faced a challenging year with a decrease in operating income and adjusted EBITDA, attributed in part to increased operating expenses.
The company reported an operating revenue of $5.404 billion for the fourth quarter, marking a 4% increase from the previous year. However, operating expenses saw a significant rise, largely due to a one-time $490 million charge for pension plan amendments. This resulted in an operating loss of $254 million for the quarter, compared to an operating income of $79 million in the same period of 2023. Air Canada’s full-year operating income stood at $1.263 billion, a notable decrease from the previous year.
Key financial metrics for the full year 2024 included an adjusted EBITDA of $3.586 billion, down $396 million year-over-year, and an adjusted pre-tax income of $1.397 billion. The company also reported a net income of $1.720 billion for the year, a decrease from $2.276 billion in 2023, influenced by the recognition of $1.154 billion of previously unrecognized deferred income tax assets. Additionally, Air Canada completed a share buyback program, canceling over 20 million shares in 2024.
Looking ahead, Air Canada’s management remains optimistic about leveraging its competitive advantages, including its global network and premium products. The company plans to maintain its guidance for 2025, expecting adjusted EBITDA between $3.4 billion and $3.8 billion, and aims to navigate industry challenges with agility and prudence, supported by ongoing investments in fleet, technology, and customer experience improvements.
