AIRLINES & ALLIANCES

Air Canada 2024 financial results: +2% Operating revenue, 47mn pax carried, Aeroplan reached 9mn active members.

Air Canada has recently unveiled its financial results for the fourth quarter and full year of 2024, alongside strategic plans focusing on growth, loyalty programs, partnerships, and customer experience enhancements.

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Air Canada

Air Canada has recently unveiled its financial results for the fourth quarter and full year of 2024, alongside strategic plans focusing on growth, loyalty programs, partnerships, and customer experience enhancements.

Financial Performance

In 2024, Air Canada achieved record operating revenues of C$22.3 billion, marking a 2% increase from the previous year. This growth was driven by a 5% increase in capacity, with the airline serving approximately 47 million passengers. Despite the revenue uptick, operating income declined by 44.6% to C$1.263 billion, influenced by rising operating expenses, which grew by 7% to C$20.992 billion. These expenses were primarily due to capacity expansion and increased costs in labor, maintenance, and IT. Adjusted EBITDA stood at C$3.586 billion, reflecting a decrease of C$396 million year-over-year. Net income for the year was C$1.720 billion, down from C$2.276 billion in 2023.

Strategic Outlook

Looking ahead, Air Canada aims to bolster its financial performance by targeting operating revenues of approximately C$30 billion by 2028, representing a 36% increase from current levels. The airline plans to achieve an adjusted EBITDA margin of at least 17% by 2028, up from the current 16%. This growth strategy is underpinned by robust demand for both domestic and international leisure travel. CEO Michael Rousseau emphasized the company’s commitment to leveraging its strengths for consistent margin expansion and cash generation, while maintaining a strong balance sheet and responsible risk profile.

Loyalty Program Enhancements

Air Canada’s Aeroplan, the country’s leading travel loyalty program with over 9 million active members, continues to evolve to meet customer needs. Members can earn and redeem points on all Air Canada flights and through a network of over 45 airline partners, accessing more than 1,300 destinations globally. The program offers features like Family Sharing, allowing members to pool points, and has eliminated additional cash surcharges on flight redemptions. Strategic partnerships with brands such as Uber, Starbucks, and various retail chains enable members to earn points through everyday purchases, enhancing the program’s value proposition.

Partnerships and Network Expansion

As a founding member of the Star Alliance, Air Canada collaborates with 26 member airlines, providing seamless connections and streamlined services across a vast network. This alliance enables Aeroplan members to earn and redeem points with partner airlines, enhancing travel flexibility. Additionally, Air Canada has resumed its non-stop service between London Heathrow and Ottawa as of March 31, 2025, operating four weekly flights. This route expansion caters to the growing demand for travel between the UK and Canada.

Customer Experience Initiatives

Air Canada is committed to enhancing the passenger experience through various initiatives. Collaborations with renowned chefs, such as Jérôme Ferrer and Vikram Vij, bring gourmet meal options to in-flight dining, while sommelier Véronique Rivest curates wine selections. The airline offers Wi-Fi access on most flights, with Aeroplan members enjoying free messaging on Wi-Fi-equipped aircraft. Premium Economy passengers benefit from increased seat recline, ample legroom, and personalized service, though the cost is notably higher than economy fares.

In summary, Air Canada’s recent financial performance reflects both achievements and challenges. The airline’s strategic focus on expanding its network, enhancing its loyalty program, fostering partnerships, and improving customer experience positions it well for future growth in the competitive aviation industry.

2024 Air Canada achievements & enhancemets: 

In 2024, Air Canada made significant strides across various aspects of its business. Below is a summary of its major achievements and newly introduced features:

Financial & Operational Achievements

• Record Operating Revenue: C$22.3 billion, a 2% increase year-over-year.
• Passenger Growth: Carried approximately 47 million passengers in 2024.
• Expanded Fleet: Took delivery of multiple new Boeing 787 Dreamliners and Airbus A220s to improve fuel efficiency and expand international capacity.
• New International Routes: Launched and resumed several key routes, including Toronto-Dublin, Montreal-Osaka, and Vancouver-Singapore.
• London Heathrow – Ottawa Route Resumed: Strengthening transatlantic connectivity.

Loyalty Program & Partnerships

• Aeroplan Expansion: Grew to over 9 million active members, maintaining its position as Canada’s premier travel rewards program.
• New Aeroplan Partners: Added Starbucks, Uber, and LCBO (Ontario’s liquor retailer) as new earning partners.
• No Cash Surcharges on Redemptions: Eliminated additional carrier-imposed cash surcharges on Aeroplan flight rewards.
• Improved Earning Rates: Increased earning potential for business travelers and frequent flyers through select credit cards and elite status bonuses.

Customer Experience Enhancements

• Wi-Fi Upgrades: Introduced free in-flight messaging for Aeroplan members on Wi-Fi-equipped aircraft.
• Premium Economy Enhancements: Improved seat recline, legroom, and meal services, providing a better mid-tier travel experience.
• Gourmet Dining Expansion: Partnered with celebrity chefs Jérôme Ferrer and Vikram Vij to elevate business class and premium economy meal options.
• More Lounge Access: Opened new Maple Leaf Lounges in select airports, expanding access for frequent flyers and business travelers.
• New Cabin Interiors: Revamped select aircraft with modernized seats, improved inflight entertainment screens, and mood lighting.

Sustainability & ESG Initiatives

• Fuel Efficiency Investments: Continued replacing older aircraft with fuel-efficient Boeing 787s and Airbus A220s to reduce carbon emissions.
• Sustainable Aviation Fuel (SAF): Increased investment in sustainable aviation fuel to support long-term emission reduction goals.
• Waste Reduction Initiatives: Reduced single-use plastics in in-flight services, aligning with global sustainability goals.
• Employee and Diversity Initiatives: Enhanced internal programs promoting diversity, equity, and inclusionacross its workforce.

These 2024 milestones illustrate Air Canada’s commitment to financial growth, improved customer experiences, and long-term sustainability. The airline continues to position itself as a leader in global aviation while enhancing its competitive edge in the market.

Soruce: GLO