Air Canada Reports 18% Growth in Cargo Revenue in Q3

Air Canada

Air Canada reports 18% year-over-year growth in cargo revenue in Q3 2024, driven primarily by strong cargo growth in the Pacific market.

The Montreal-based airline said it expects revenue of $253 million Canadian in the quarter ended Sept. 30, up from $215 million in the third quarter of 2023.

Air Canada said in its third-quarter management analysis: ““In the third quarter of 2024, Cargo revenues increased 18% from the third quarter of 2023.”

“This was primarily due to higher yields and volumes of chargeable kilos of cargo in passenger aircraft in the Pacific market.”

“Higher freighter revenues in the Americas also contributed to the increase. This was partially offset by lower belly cargo revenues and freighter revenues in the Atlantic.”

Air Canada Cargo Revenue Growth Q3 2024

In a Q3 2024 earnings call transcript, Mark Galardo, executive vice president, network planning and revenue and president of Cargo, noted that the airline “surpassed expectations on our 767 freighter operation”.

“Our right-sized network and freighter to belly commercial model are producing solid financial results that we believe are sustainable in the long run. We’re confident that cargo will continue performing,” he added.

Responding to an investor question about the state of air cargo demand, Galardo noted that the airline expects demand to continue into the fourth quarter and into early 2025, with Asia Pacific and India as strong growth hotspots.

“The overall cargo environment is quite favorable. I would say it’s quite favorable in Asia Pacific. We see similar trends in India. And those really kind of stand out in terms of weakness or any areas of concern, none at this time. And we think this cargo tailwind continues into Q4 and the early part of next year.”

Air Canada confirmed that it had six Boeing 767 freighters in service as of September 30. The carrier has significantly scaled back its cargo fleet plans.

The airline had originally planned to operate a fleet of 12 freighters — 10 767Fs and two Boeing 777Fs — but last September announced the cancellation of an order for two new 777Fs. Then, in May of this year, Air Canada revealed that it had also canceled plans to convert two 767s to freighters.

A key development highlighted by Michael Rousseau, president and CEO, is that Air Canada has now reached a new four-year collective agreement with its pilots, represented by the ALPA union, following a pay dispute that nearly led to a strike.

Across the board, Air Canada reported operating revenue of C$6.1 billion in the third quarter, down 4% year-over-year. Passenger revenue was C$5.6 billion, down 4% year-over-year.

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Source: Phaata.com (via AirCargoNews)

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